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LSDefine

Simple English definitions for legal terms

gap theory

Read a random definition: preces

A quick definition of gap theory:

The gap theory is a rule in insurance that says if someone causes an accident and has insurance, but their insurance doesn't cover all the damages, the injured person can use their own underinsured motorist coverage to make up the difference. This means that even if the person who caused the accident has insurance, they may still be considered underinsured if their coverage isn't enough to pay for all the damages.

A more thorough explanation:

Definition: In insurance, the gap theory is the principle that a person who causes an accident will be considered underinsured if their liability insurance coverage is legally enough but less than the injured party's underinsured-motorist coverage. This principle allows the injured party to use their underinsured-motorist coverage.

Example: Let's say that John causes an accident that results in $50,000 worth of damages to Jane's car. John has liability insurance that covers up to $30,000 in damages. However, Jane has underinsured-motorist coverage that covers up to $50,000 in damages. In this case, John is considered underinsured, and Jane can use her underinsured-motorist coverage to cover the remaining $20,000 in damages.

The example illustrates the gap theory because John's liability insurance is legally enough, but it is not enough to cover all of the damages caused by the accident. Therefore, Jane can use her underinsured-motorist coverage to fill the gap between John's insurance coverage and the total amount of damages.

gap report | garauntor

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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