Uninsured and Underinsured Motorist Claims: Evaluating Triggers, Stacking, Subrogation, Substitution of Benefits

UM and UIM coverage involves first-party claims made by insureds against their own insurance company where the alleged tortfeasor(s) in an auto accident has no insurance or insufficient insurance to cover losses. The scope of coverage and who may seek it are often disputed. Each state may have its own statutory or regulatory requirements as well.

UM/UIM policies have defined limits of coverage, exclusions, and unique procedural requirements with which counsel must be familiar. Complex issues can arise in recovering UM or UIM benefits, subrogation, and settlement.

Policyholders have sometimes accused UM/UIM insurers of taking an overly aggressive approach against their own insureds and being faster to deny claims than they would be in an ordinary third-party claim. Whether a claim is undisputed and must be paid is not entirely settled concerning UM/UIM policies. This has led to an increase in bad faith claims and awards of other extracontractual damages.

Listen as this experienced panel discusses UM/UIM coverage's role, how to maximize benefits, and what constitutes bad faith in administering these policies.

1. Governing law
2. Nature and scope of coverage
3. Prerequisites for payment
4. Amount of coverage and stacking
5. Bad faith issues
6. Liens

The panel will review these and other key issues:

• Who is covered?
• Can policies be stacked?
• What offsets or liens apply to the benefits?
• What constitutes bad faith?