Ella M. Allen v. Transamerica Insurance Company

BAUER, Circuit Judge.

This diversity action requires us to interpret the underinsured motorists’ provision of an insurance policy. The insured, Ella M. Allen, was in a car accident on May 2, 1994. She alleged that she sustained at least $150,-000 in damages. She later filed a personal injury action against Candice Houston, the driver of the other ear, and recovered $50,-000 (the limit under Houston’s policy) from Houston’s insurer. Allen sought additional recovery from her own insurer, Trans-america Insurance Company, under the un-derinsured motorists’ provision of her motor vehicle liability…