Nationwide Mutual Insurance v. State Farm Automobile Insurance

STUMBO, Justice.

This ease presents an issue that is an extension of the doctrine requiring an under-insured motorist insurance carrier, in order to preserve its subrogation right, to substitute its payment for that of the liability *57carrier for the settling tortfeasor. See, Coots v.. Allstate Ins. Co., Ky., 853 S.W.2d 895 (1993). Here, the underinsured motorist carrier (UIM), Nationwide Mutual Insurance Company (hereinafter “Nationwide”), substituted its $50,000 for the same amount offered in settlement by the liability carrier, State Farm Automobile Insurance Company (hereinafter “State…