Steven Plitt, Expert Witness Steven Plitt, Expert Witness
Insurance Bad Faith Claim Handling Expert Serving Clients Nationwide

Indiana Supreme Court Finds That UIM Suit Limitation Clause Was Ambiguous

In State Farm Mutual Auto. Ins. Co. v. Jakubowicz, 56 N.E.3d 617 (Ind. 2016) the Supreme Court of Indiana struck down State Farm's suit limitation clause in its UIM policy which imposed a three-year deadline for pursuing UIM benefits because it conflicted with the policy's requirement to exhaust the tortfeasor's liability coverage which created an ambiguity.

The court noted that State Farm could have cured the ambiguity by requiring the insured to sue on a UIM claim within three years after the accident. Alternatively, State Farm could have required the insureds to exhaust the tortfeasor's coverage before suing for UIM coverage without a time limitation.

Under these type of clauses the insured is required to sue for UIM benefits within a policy-specified period, but can only do so after exhausting the liability coverage. The insured has no ability to enforce the liability insurer to settle.

No Comments

Leave a comment
Comment Information
FindLaw Network

Contact Steven Plitt

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Phone: 602-322-4038