Texas Property and Casualty License Practice Exam

What must an insured do to reject uninsured/underinsured motorist coverage in Texas?

1. Notify the insurer via email

2. Submit a verbal rejection

3. Reject the coverage in writing

4. Ignore the coverage options

The correct answer is: Reject the coverage in writing

In Texas, an insured must formally reject uninsured/underinsured motorist coverage in writing to ensure that the decision is documented and acknowledged. This requirement is in place to protect both the insured and the insurer, ensuring that there is clear evidence of the insured's choice to forgo this coverage. When the rejection is made in writing, it helps to avoid disputes or misunderstandings in the future regarding the coverage options that were available at the time of policy selection. Other methods, such as submitting a verbal rejection or notifying the insurer through email, do not meet the legal standards for rejecting this type of coverage in Texas. Without a written rejection, there could be ambiguity about the insured's intent, potentially leading to complications when claims arise. Ignoring the coverage options is also not a valid method of rejecting the coverage, as it does not convey an active decision to decline something that was offered, making it ineffective in a legal context.