Vogelin v. American Family Mutual Insurance

Plaintiff was injured in an automobile accident and filed an action against defendant to recover underinsured motorist (UIM) benefits allegedly due her under her insurance policy with defendant. The issue on appeal concerns the calculation of the UIM benefits due plaintiff. The specific question presented is this: When an insured’s damages exceed both the amount recovered from the tortfeasor’s liability insurance and the uninsured motorist (UM) limit of the insured’s policy, are UIM benefits calculated by subtracting the amount received from the tortfeasor’s liability insurance from (a) the…