Kessler v. Weigandt

The issue is whether an “authorized” 1 motor vehicle liability insurer which is required under ORS 743.825 2 to reimburse another such insurer for the amount paid by it to its insured for personal injury protection (PIP) benefits 3 is entitled to a credit in that amount in determining whether the reimbursing insurer has exhausted its liability policy limits in settling a claim against its insured by the payee of the PIP benefits where the payee’s damages are in excess of the liability policy limits. We hold that the liability insurer is not entitled to such credit.

This plaintiff was injured…