American Service Insurance v. Pasalka

The public policy of this state requires that an uninsured motorist provision be written into every auto insurance policy. In this case, the policies provided that no demand for arbitration of an uninsured motorist claim could be made more than two years after the accident. What happens, then, when the tortfeasor’s insurance company does not go into liquidation until more than two years after the accident?

The plaintiff, American Service Insurance Company (ASI), denied uninsured motorist coverage to its insureds because they failed to file their claims for arbitration within two years of the…