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Insurance – Uninsured Motorist Coverage

By: Derek Hawkins//January 20, 2022//

Insurance – Uninsured Motorist Coverage

By: Derek Hawkins//January 20, 2022//

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WI Court of Appeals – District IV

Case Name: Audrey Tuohy v. Artisan and Truckers Casualty Company

Case No.: 2020AP1793

Officials: Kloppenburg, Fitzpatrick, and Nashold, JJ.

Focus: Insurance – Uninsured Motorist Coverage

This appeal concerns WIS. STAT. § 632.32(5)(i) (2019-20), which permits an insurer to offset underinsured motorist (UIM) or uninsured motorist (UM) coverage limits to account for payments from other sources. The question is whether § 632.32(5)(i) allows an insurer to twice offset a single payment from the UIM tortfeasor’s insurer, by applying that reduction to both UIM and UM coverage limits. We conclude that § 632.32(5)(i) does not permit this type of double reduction. Accordingly, we affirm the judgment awarding Audrey Tuohy, the injured insured, the disputed portion of her UM payment. We further conclude that this appeal is not frivolous and therefore deny Audrey’s motion for costs and fees under WIS. STAT. RULE 809.25(3).

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Derek A Hawkins is Corporate Counsel, at Salesforce.

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