A state appellate court recently decided that a personal injury case involving an underinsured motorist claim should be remanded back to the trial court, due to ambiguities in the insurance contract. The main issue that was being disputed was a clause in the insurer’s policy that required that an underinsured motorist claim must be brought within three years, although the policy also stated that the insured individual must first exhaust the underinsured’s insurance policy.
In this case, a mother and her two sons were involved in a serious car accident with an underinsured motorist. The mother filed a lawsuit against the other driver, and her own insurance company also filed a complaint against the driver. The insurance company was seeking damages for payments they made as a result of the accident. However, the other driver’s insurance policy coverage was minimal. The mother filed a claim with her own insurance company as well because the other driver’s policy was insufficient to cover her damages. However, since this was done more than three years after the accident, the insurance company filed a motion to dismiss and argued that the claim was barred by the requirement in the contract that all claims be brought within three years.
The trial court denied the insurance company’s motion, and they then appealed. The court affirmed the trial court’s decision and found that the policy was ambiguous and should be construed in favor of the plaintiff.