In re the Arbitration between State Farm Mutual Automobile Insurance & Sanchez

Order unanimously reversed on the law without costs and petition granted. Memorandum: Supreme Court erred in denying petitioner’s application pursuant to CPLR 7503 to stay arbitration of respondent’s underinsured motorist *981claim. Respondent’s demand for arbitration was premature. Insurance Law § 3420 (f) (2) states that, "[a]s a condition precedent to the obligation of the insurer to pay under the supplementary uninsured motorists insurance coverage, the limits of liability of all bodily injury * * * insurance policies applicable at the time of the accident shall be exhausted by payment of…