How would Martha's Business Auto Coverage Form respond to a $30,000 underinsured motorists claim in another state?

The Business Auto Coverage Form typically includes provisions for underinsured motorist coverage, which protects the insured when involved in an accident with a driver who does not have enough insurance to cover the damages. The response in this context would involve the limits prescribed by the policy and state requirements.

In this scenario, the correct answer indicates that the Business Auto Coverage Form would provide the $25,000 limit required. This is reflective of the minimum coverage mandated by certain states for underinsured motorist claims. The insurance is designed to pay for damages that exceed the at-fault driver's liability limits, up to the specified coverage limit.

The amount of coverage for underinsured motorists can vary greatly by state. If the state where the accident took place requires a minimum coverage of $25,000, that would be the amount the policy would respond with, aligning with state law. Coverage would not exceed this limit unless the insured has purchased additional coverage beyond the statutory minimum. This ensures that the insured's rights to claim under these specific circumstances are upheld within the legal framework of the state where the incident occurred.

In summary, the Business Auto Coverage Form responds according to the stipulations of the policy in relation to state requirements, thus providing the $25,000 limit necessary for