Allen v. Transamerica Insurance

BAUER, Circuit Judge.

This diversity action requires us to interpret the underinsured motorists’ provision .of an insurance policy. The insured, Ella M. Allen, was in a ear accident on May 2, 1994. She alleged that she sustained at least $150,-000 in damages. She later filed a personal injury action against Candice Houston, the driver of the other car, and recovered $50,-000 (the limit under Houston’s policy) from Houston’s' insurer. Allen sought additional recovery from her own insurer, Transamerica Insurance Company, under the underinsured motorists’ provision of her motor vehicle liability…