Maxwell v. Allstate Insurance Companies

OPINION

The sole issue on appeal is whether an insurer’s subrogration clause for medical payments paid under an insured’s automobile insurance policy is void as violative of public policy. We hold that a subrogation clause under which the insurer obtains subro-gation rights from its insured for medical payments violates public policy. Accordingly, we reverse.

THE FACTS

Jimmie Brown and appellant Roger L. Maxwell were in an automobile accident. Brown was injured. Maxwell was liable for Brown’s injuries. Respondent Allstate Insurance Companies was Brown’s insurer. Appellant Farmers Insurance…