Michigan Court of Appeals Says Uber Must Pay Underinsured Motorists Benefits
A vehicle under dispatch by Uber and a truck were involved in a motor vehicle accident. The truck driver was at-fault. The Uber driver sustained serious injuries. The truck had auto liability limits of $100,000 and an umbrella policy -- but the terms of the umbrella policy required $250,000 in primary auto liability coverage before the umbrella became available. Uber provided underinsured motorist coverage in the amount of $1,000,000.
Plaintiff, the Uber driver’s insurer, filed a declaratory action requesting a judgment stating that Defendant, the truck driver’s insurer, was liable for any judgment in excess of $250,000. Defendant filed a motion for summary disposition based upon the clear language requiring its insured to maintain $250,000 in primary auto liability coverage before the umbrella coverage was accessible. The Michigan Court of Appeals affirmed the trial court’s ruling granting Defendant’s motion for summary disposition and denying Plaintiff’s action for a declaratory judgment.
In the unpublished case, James River Ins Co v. Citizens of America, the Michigan Court of Appeals found that Defendant was not liable beyond $250,000. The Court concluded that the plain language of the truck insurer’s insurance policy was unambiguous and reflected Defendant’s intent as a matter of law. Defendant’s coverage was not available because it’s insured failed to have primary auto liability coverage of $250,000.
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