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You're correct that it is more of a physical damage coverage, but NAIC defines it as a liability coverage.

What'd dey know. ;-)

That is how it is reported on the insurer's annual statement.

That wouldn't surprise me, as UM generally goes hand-in-hand with Liability coverage on policies, the claims are, generally, handled by the same set of adjusters and in a similar fashion, wherein fault plays a significant role. The limits of UM coverage is closely tied to Liability limits. In a way UM is a complementary statutory coverage to Liability - In Illinois, for example, insurers are required to offer BIUM up to the limit of BI Liability carried, the coverage cannot be waived (though in some States it can be) and UMPD must be offered whenever liability is carried unless Collision is carried on the policy. Though I've seen some huge UM and UIM claims paid, the premium is fairly nominal and I've never seen it surcharged for tickets and accidents - I suspect that UM claims paid are subsidized, to a significant extent, by Liability premiums and UM losses are added to Liability losses in determining Liability rate structures (which you seemed to imply in your comments), or am I not correct in that surmise?
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