In Cothran v. State Farm Mutual Auto Insurance Co., 2019 WL 3683591 (S.C. 8/2/19) the Colorado Supreme Court invalidated a PIP provision in State Farm’s policy which attempted to coordinate its benefit with workers compensation benefits. The Court held that South Carolina’s PIP statute prohibited set-offs, and therefore the clause was void. The Court found that the language of South Carolina’s Section 38-77-144 was intended to prevent insurance companies from avoiding payment of PIP benefits by directing their insureds to other sources of recovery, such as workers compensation insurance.
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