Richards v. Milwaukee Insurance Co.

OPINION

CRIPPEN, Judge.

This appeal concerns the definition of an underinsured motor vehicle and when an insured may recover a gap in coverage between a settlement and the tortfeasor’s policy limit.

FACTS

Appellant Rodney Lynn Richards was injured in a 1988 two-car collision. Richards had no-fault and underinsurance (UIM) coverage purchased from respondent Milwaukee Insurance Company. The driver of the other car, Michael Grosskreutz, carried $30,000 of liability coverage. Appellant agreed to settle with Grosskreutz’s insurer for $20,000, and notified Milwaukee in compliance with the requirements…