gap theory

gap theory. Insurance. The principle that a tortfeasor will be considered underinsured if his or her liabili-ty-insurance coverage — although legally adequate — is less than the injured party’s underinsured-motorist coverage. • This principle allows an injured party to invoke underinsured-motorist coverage. Cf. EXCESS THEORY. [Cases: Insurance 2787. C.J.S. Insurance § 1657.]

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词条贡献者

双语律师Denise，知名法学院国际私法专业，擅长翻译各类与国际争议解决相关的法律文件。