IDAHO SUPREME COURT PERMITS UIM OFFSET

In Wood v. Farmers Ins. Co. of Idaho, 166 Idaho 43, 454 P.3d 1126 (Idaho 2019) the Court held that where a UIM policy contained an offset provision which reduced the amount of UIM coverage by the liability limit of the at-fault driver, the offset was allowed by Idaho’s public policy. The Court found that Idaho’s statute creating a public policy applicable to UIM coverage allowed for different forms of UIM coverage and that the Idaho legislature was aware that offset coverage was one type of UIM coverage that might be offered by insurers. As such, the UIM offset provision did not violate Idaho’s public policy.