An underinsured motorist (UIM) caused an injury-accident. The injured woman was a passenger in the other vehicle.
Her driver had Personal Injury Protection (PIP) coverage on his auto insurance policy. That company paid the woman’s medical bills under the PIP coverage. She later made a UIM claim against her driver’s policy.
The insurance company asked for and the trial court allowed an offset for the amounts already paid under the PIP coverage.
Under Washington law an insurer is entitled to an offset when both (1) the contract itself authorizes it and (2) the insured is fully compensated by the applicable measure of damage.
A party covered by insurance is fully compensated when they have recovered all of their damages as a result of a motor vehicle accident. If the injured party is fully compensated not allowing an offset results in a double recovery.
The Court of Appeals concluded that in this case the contract authorized an offset and that the injured woman was fully compensated.
The Court of Appeals upheld the trial court.[1]
By Travis Eller
