Malone v. Nationwide Mutual Insurance

Opinion

CROSBY, J.

We hold here that underinsured motorist coverage is not the equivalent of full excess coverage. As the statutory scheme is designed, the underinsured motorist carrier gets a dollar-for-dollar credit for all payments by third party tortfeasors to the insureds, whether the insureds are made whole or not. In other words, a carrier providing underinsured motorist benefits never pays the full amount, only the difference between the policy limits and all contributions by all tortfeasors to all insureds.

I

Jo Ann Malone’s husband was struck by a car and killed as he changed a tire on…