State Farm Mutual Automobile Insurance Co. v. Green

PARRISH, Justice:

¶ 1 In this case, we consider whether Lora Green, who was severely injured in an automobile accident, is entitled to underinsured motorist (“UIM”) coverage despite having settled with a tortfeasor, Marlene Murray, in apparent violation of the terms of her auto insurance policies. At the time of the accident, Green held two auto insurance policies containing UIM coverage that were underwritten by State Farm Mutual Automobile Insurance Company (“State Farm”). After Green settled with Murray, State Farm brought an action seeking a declaration that State Farm was not obligated to…