In Powell v. Clark, a passenger was hurt in a Tennessee motor vehicle collision that was caused by another motorist. Unfortunately, the at-fault driver did not carry liability insurance when the traffic wreck occurred. Following the accident, the injured passenger sought to recover uninsured motorist (“UIM”) accident benefits. At the time of the crash, her insurance policy included UIM and medical payments coverage of up to $100,000. In addition, the driver of the vehicle the injured woman was riding in also carried $100,000 in UIM benefits, but only up to $2,000 in medical payments. Under Tenn. Code Ann. § 56-7-1201(b)(3), the driver’s insurer was the primary carrier for purposes of UIM coverage.
After the driver’s insurer paid the injured passenger the full medical payments policy limits of $2,000, the passenger’s insurance company paid her more than $70,000 in medical payments. Next, the injured passenger filed a lawsuit against the at-fault driver in a Tennessee court. Both insurers were issued a summons and filed an answer in the case. About one month after the injured passenger’s insurer filed its answer, the company was dismissed from the lawsuit. Additionally, the at-fault driver failed to appear.
Continue reading →