Alberta SEF 44 Family Protection Endorsement: Coverage Fundamentals

A family of 4 in Leduc, Alberta sustained catastrophic injuries in March 2024 when their vehicle was struck by an underinsured commercial truck on Highway 2. The at-fault driver carried only the provincial minimum $200,000 in liability coverage, while the family's medical expenses, lost income, and care costs quickly exceeded $1.2 million. The family held an SEF 44 endorsement on their auto policy with $2 million in limits, and separately maintained a home umbrella policy with $1 million in coverage.

The insurer must now determine how the SEF 44 responds to the shortfall, whether the umbrella policy's terms extend to underinsured motorist gaps, and how these coverages integrate when both potentially apply to the same loss. The claims handler faces questions of priority, stacking, and whether the umbrella's "following form" language captures this exposure.

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