General Casualty Insurance v. Lacey

The issue presented is whether, under the facts of this case, the hability-limit exhaustion clause in General Casualty Insurance Company’s underinsured-motorist policy is valid and enforceable. We hold that it is.

BACKGROUND

On June 22, 1991, George W Lacey was operating a car that was involved in a motor vehicle accident. At the time of the accident, Lacey was covered by an underinsured-motorist policy issued by General Casualty. That policy provided coverage limits of $100,000 per accident and $300,000 per occurrence, and included the following liability-limit exhaustion clause:

“We will pay…