Q: personal Injury - How does UIM coverage work; specifically with the "add on or in addition to" supplemental coverage?
Georgia : 2015 Person A Hit Person B from behind. Person B had an excess of 80,000 medical bills. Person B after a long battle with Insurance from Person A, won the suit by default in 2019. Person A has 100,000 thousand in coverage. Person B has 50,000 in coverage along with UIM add-on coverage of 25,000. Person B settled with Insurance from person A for 50,000. Is Person B entitled to receive 25,000 from their own UIM coverage?
A:
In my opinion, which someone may disagree, no that person would not be able to collect from their insurance coverage because they settled with person A's insurance for less than what the limits of their insurance. UIM typically does not kick in until the liability limits have been exhausted unless UIM agrees to something with you prior to you agreeing to something with the liability carrier.
I would still suggest contacting an attorney and providing him all of your documents so that he can review and give you a fully informed decision rather than one based on a hypothetical fact scenario.
A: I'll go on to say you have to put the UIM on notice of the lawsuit prior to getting a judgment if you want to collect from them typically, because they have a right to defend the suit. If they were not a party to the lawsuit and on notice of the suit prior to the default judgment then they likely would not pay even if the liability carrier's insurance was exhausted.
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