Foremost Life Insurance v. Waters

At issue in this case is the interpretation of a provision of an insurance policy entitling the insurer to reimbursement when the insured has a right to recover damages from a third party. The Court of Appeals refused to allow reimbursement of the plaintiff insurance company from such a recovery. We conclude that the insurance company was entitled to reimbursement under the policy provision, and reverse.

I

Dorothy Vivian Blodgett was seriously injured in an automobile accident. The plaintiff had issued a group disability policy to Ms. Blodgett’s employer, under which she received $26,714.77,…