McShane v. New Jersey Manufacturers Insurance

The opinion of the court was delivered by

PAYNE, J.A.D.

This appeal raises the issue of whether a tortfeasor’s policy limits of $100,000 or those limits as reduced to $90,831.60 through recovery by the injured claimant’s insurer on its subrogated claim for property damage payments must be credited against the claimant’s underinsured motorist (UIM) coverage for purposes of calculating the UIM benefits available to a claimant whose bodily injury claim exceeds all available insurance recovery. We hold under the contract at issue in this case that only the amount paid to the insured as damages for…