Which of the following statements is CORRECT about Uninsured/Underinsured Motorists coverage in this state?

The statement that it must be issued at limits equal to the Bodily Injury/Physical Damage policy limits is correct regarding Uninsured/Underinsured Motorists (UM/UIM) coverage in Nevada. This requirement ensures that a motorist has adequate protection in the event they are involved in an accident with an uninsured or underinsured driver. By mandating that the limits of UM/UIM coverage are equal to those of the primary liability policy, the law provides a consistent level of financial security, allowing injured parties the ability to recover damages up to the same amount they would have if the other driver were fully insured.

This structure promotes fairness and helps to protect drivers from situations where they may not receive full compensation due to the other party's lack of insurance. In a state where the risks associated with underinsured or uninsured motorists are present, this requirement aims to mitigate the impact on victims' ability to recover costs for medical expenses or property damage resulting from an accident.

Understanding this provision is crucial for anyone involved in the insurance process, as it ensures that drivers are adequately informed of their coverage options and the protections provided under Nevada law.