New Jersey Manufacturers v. O'Connell

The opinion of the court was delivered by

MUIR, Jr., J.A.D.

On this appeal, we are called upon to resolve the effect Aubrey v. Harleysville Ins. Co., 140 N.J. 397, 658 A.2d 1246 (1995), has on a preexisting agreement between an injured non-owner driver of an automobile and a UIM insurer for the owner where the owner’s policy provides greater UIM liability coverage than the driver’s policy. Prior to the decision in Aubrey and in reliance on Landi v. Gray, 228 N.J.Super. 619, 550 A.2d 768 (App.Div.1988), which Aubrey overruled, New Jersey Manufacturers (NJM), the UIM insurer for the owner of the…