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.] [Blacks Law 8th]