Barnes v. Hardy

JOHNSON, Judge.

This appeal raises the single question of whether an insurer is liable for prejudgment interest when such payment would result in a total amount that exceeds the stated policy limits. Plaintiffs argue that USF&G’s liability is not limited to the policy limits since the policy conflicts with G.S. § 24-5. We disagree.

Initially, we recognize that an offer of judgment was made by defendants and that a settlement for the full $50,000 policy limit was reached by the parties. We also recognize that this settlement amounted to a release of claims, not a judgment. The issue of USF&G’s…