Farmers Texas County Mutual Insurance Co. v. Okelberry

OPINION

Ken Wise, Justice

This is a suit between an insured and his insurance company over the amount due to the insured from his underinsured motorist (UIM) coverage following a settlement in an underlying personal injury lawsuit. Appellant contends that the trial court erred in failing to offset the full amount of the settlement against the insurance company’s UIM policy limit. We hold that Farmers was entitled to a credit for the full amount of the settlement and so reverse and remand to the trial court to enter a judgment accordingly.

Factual Background

Appellee Steven Okelberry and his wife,…