Nationwide Mutual Insurance v. Lehman

¶ 1 This appeal presents the question of whether an insurer may deny underin-sured motorist coverage when its insured settles his or her claim with a tortfeasor for the limits of available liability insurance without the consent of the insurer as required by the policy. We conclude that the insurer may not deny underinsured motorist coverage unless it demonstrates that its interests were actually prejudiced by the settlement. Accordingly, we affirm the decision of the trial court granting the insured’s motion for summary judgment on the insurer’s liability to the insured for underinsured…