United States Fidelity & Guaranty Co. v. Warmack

United States Fidelity and Guaranty Company (U.S.F.&G.) appeals a final declaratory judgment holding appellee/estate had not forfeited underinsured motorists’ benefits under the deceased’s insurance policy with U.S.F.&G. by proceeding to judgment against the underinsured motorist and could still demand arbitration. We hold appellee is not entitled to demand arbitration and accordingly reverse the lower court’s declaratory judgment.

Appellee’s decedent, Katie Lee Smith, was killed in a one car accident on February 22, 1976, while a passenger in a car owned and operated by William Ingram. Ingram…