Cotton v. Insurance Co. of North America

SPAETH, President Judge:

This appeal is from an order granting summary judgment. Appellants were uninsured passengers in an uninsured motor vehicle when it collided with an insured motor vehicle. Upon application to the Pennsylvania Assigned Claims Plan, appellee was designated appellants’ assigned obligor. Subsequently, without appellee’s knowledge, appellants entered into a settlement agreement with the driver of the insured vehicle. The trial court held that under the Uninsured Motorist Act, 40 P.S. § 2000(e)(2), appellants’ settlement precluded their recovery of uninsured motorist benefits…