Hasper v. Center Mutual Insurance Co.

KAPSNER, Justice.

[¶ 1] Jason Hasper has appealed from a judgment dismissing his claim for under-insured motorist (“UIM”) benefits against Center Mutual Insurance Company (“Center Mutual”). We reverse and remand for further proceedings, concluding that a UIM insurer which seeks to deny coverage based upon the insured’s failure to notify the insurer of a proposed settlement with the tortfeasor must demonstrate that it suffered actual prejudice resulting from the lack of notice.

I

[¶2] In November 2000, Hasper was injured in an automobile accident in South Dakota while riding as a passenger in a…