State Farm Mutual Automobile Insurance v. Calcutt

CONNOR, Judge:

This appeal arises from a declaratory judgment action to construe the provisions of an automobile insurance policy. At issue is whether State Farm, Mayo Rudy Calcutt’s underinsurance carrier, may offset workers’ compensation benefits Calcutt may receive. The trial judge held the policy clause providing for a setoff of workers’ compensation benefits conflicted with applicable underinsured motorist coverage statutes and violated public policy. We reverse.

FACTS

On March 31, 1994, Calcutt was injured in a motor vehicle accident while operating his employer’s vehicle within the course…