Chapter 9: Uninsured / Under-insured motorist coverage

What is the formula for how short you are on coverage when an accident is caused by an under-insured driver?

Actual damages - liability limits of the tortfeasor - amount you can recover under your own UM limits.

What is the limit with regard to inter-policy stacking?

you can only stack up to the amount of your damages. can't be compensated beyond this.

insured settles without the consent of the insurer, can the insurer deny coverage under an UM/UIM policy? (hernandez v. gulf group lloyds)

Insurer can only deny this coverage if they show they were prejudiced by not being notified of the settlement.

car is driving along with unsecured cargo, a piece falls off and hits another car, does this satisfy the physical contact requirement?

nope.

What's the rule for bystander damages?

observing a family member in an accident does not entitle you to a separate limit under the policy, since there was only one person injured, you can only get the per person policy limit.

(for bystander purposes) how many people are "injured" in a wrongful death case?

only one. doesn't matter if a family member witnessed a horrible death, can only invoke 1 policy limit.

owned vehicle exclusion?

Your car never be an UI vehicle by definition in the policy. The Insured's own vehicle is also never a UIM vehicle. (definitional exclusion)

who can the insured settle with without the consent of the insurance co.?

any non-motorist. don't need permission to settle with these people because the insurance co. has no subrogation rights against them.

When can you get both liability insurance coverage and UM/UIM coverage under the same policy?

if it's a two car accident, and both drivers are equally at fault, then you can get liability insurance for your portion of the fault, and can get UM/UIM coverage because of the other car.

what is the consequence of the owned vehicle exclusion?

if you or any passengers in your vehicle are injured and there is a shortfall in coverage, their damages cannot be paid using the UM/UIM portion of your auto policy

what is the difference between inter-policy stacking and intra-policy stacking?

inter-policy stacking (permissible): adding the same type of coverage from multiple policies intra-policy stacking (not permissible): adding different types of coverage from the same policy. like adding a PIP claim to a UM claim.

test for prejudice?

must show that the tortfeasor had other assets that the insurance company cannot now collect.

Can a passenger ever collect under a driver's UM policy?

no

does the liability portion of the auto policy cover punitive damages?

no

what if the tortfeasor that caused the collision was performing a criminal act levied against the vehicle's occupants? (Collier v. employers national)

no coverage because there wasn't an "accident", the insurance co. didn't intend to insure against this kind of conduct

Can you get exemplary damages awarded against an uninsured motorist from their insurance carrier? (state farm v. shaffer)

no, against public policy because exemplary damages are intended to punish, and insurance co. is not responsible for actions of insured.

Does your policy's UM/UIM coverage provide for punitive damages?

no, against public policy because it isn't deterring conduct or punishing the bad actor. e.g., uninsured motorist hits insured motorist who has UM/UIM coverage. uninsured motorist is found liable for punitive damages. Insured motorist's UM/UIM coverage will only cover actual damages because the insurance co. shouldn't have to pay for uninsured's irresponsibility.

if a passenger was injured but has already recovered the policy limits under the driver's policy, but still has uncompensated damages, can she recover under the driver's UIM coverage?

no.

is an insured required to get consent from their insurance company to settle with a non-motorist? (simpson v. geico)

no.

is it permissible to intra-policy stack if you have multiple vehicles or pay multiple premiums under one UM policy?

no. still can't intra-stack. only permitted to stack if you have more than one policy.

What is the main requirement for a hit and run claim?

there has to be actual physical contact. (also required to file a police report)

when is someone considered under-insured?

when the applicable proceeds of his liability insurance were insufficient to compensate for the injured party's actual damages

General Rule for settlement w/out consent: no coverage if you settle with the UM motorist without consent AND the insurance company shows that it was prejudiced by the settlement. When is the insurance co. "actually prejudiced?"

when the insured settles with a tortfeasor who has assets in excess of the liability limits of the policy.

regarding the requirement of physical contact, what is the one exception?

when there is an unbroken chain of collisions, with a clearly definable beginning and ending, occurring in a continuous sequence.

What if there are multiple theories available through which someone could acquire damages? is there still only one injury?

yes, ex. wrongful death and mental anguish, still only one injury. if physical manifestation of mental anguish, now you have two injured parties.

if two cars are equally at fault, can UM/UIM coverage be collected against both?

yes. each driver can collect under their UM/UIM coverage for the amount the other driver is un/underinsured. collecting UM/UIM coverage because of the other vehicle.