Cundiff v. State Farm Mutual Automobile Insurance

OPINION

McGREGOR, Chief Justice.

¶ 1 We granted review to decide whether Arizona’s Uninsured/Underinsured Motorist Act (UMA), Ariz.Rev.Stat. (A.R.S.) § 20-259.01 (2002 & Supp.2007), permits an insurer to reduce Underinsured Motorist (UIM) coverage by the amount of workers’ compensation benefits an insured receives. See A.R.S. § 20-259.01.G (defining UIM coverage). For the reasons that follow, we hold that the UMA’s definition of UIM coverage precludes an insurer from reducing such coverage based on the insured’s receipt of workers’ compensation benefits.

I

¶ 2 In 1997, a vehicle struck Pima…