Michigan Mutual Liability Co. v. Karsten

The present controversy involves a dispute between an insurance company, plaintiff-appellant, and the insured, defendants-appellees, concerning the proper construction of provisions contained in an automobile insurance policy. Defendants, husband and wife, were injured in a three-car accident. Subsequently, the husband made a settlement without plaintiff’s consent with one of two jointly-liable tortfeasors. The settling tortfeasor was insured but the other tortfeasor was uninsured. The insurance policy’s uninsured-motorist section contained a coverage limit of $10,000, an exclusionary clause…