Farmers Alliance Mutual Insurance Company v. Robert E. Miller Carole J. Miller, the Estate of Richard Miller, Deceased

KOZINSKI, Circuit Judge:

On February 23, 1986, Richard Miller was a passenger in a car driven by Richard Dean Smith. Smith ran a red light and crashed into another vehicle, killing Miller.

Three years later, the amount Miller’s parents will recover from their insurance company turns on our resolution of two questions of Montana insurance law: Is an offset provision in an underinsured motorist policy either ambiguous or contrary to public policy? We hold that the provision is neither.

I

At the time of the accident, Miller and his parents, appellees Robert and Carole Miller, were named insureds…