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Uninsured and Underinsured Motorist Coverage - Rights and Stacking

RIGHTS AND OBLIGATIONS OF THE UM/UIM CARRIER

The insurance company must pay the insured, or plaintiff, all sums the insured is legally entitled to recover from the defendant up to the limits of the UM/UIM policy. However, the insurance company is not obligated to pay until the insured obtains a final j udgment from a court against the uninsured or underinsured motorist. If there is also a known insured co-defendant against whom judgment is also entered, the “non John Doe” carrier must pay before the UM carrier pays.

Once the plaintiff or her personal injury attorney makes a UM/UIM claim against the insurance company, the insurance company no longer has to furnish information to the plaintiff, nor does the plaintiff have to cooperate with the insurance company.

STACKING AND PRIORITY OF PAYMENT

Stacking, adding two or more policies together, of UM/UIM coverages is permitted where the plaintiff insured has two or more separate policies available. For example, a person is injured by an uninsured motorist while driving a vehicle he does not own. If the injured person has a policy on the non-owned vehicle and another on a personal vehicle not involved in the accident, then he may apply the UM limits of both policies toward any judgment he receives. However, stacking is not permitted if the insured has multiple coverages within the same policy, even if separate premiums are paid.

If there are multiple UM/UIM coverages available, the UM/UIM coverage written on the vehicle involved in the accident has to pay first toward any judgment rendered by the court. Next in line is any insurance on the claimant’s owned vehicle(s). Last in priority is coverage in the plaintiff’s household. If there is more than one policy at a particular level, the coverage is pro-rated.