Strategies, Challenges, and Answers

Other Insurance Offsets

Policy provisions that require the underlying policy to be exhausted are against public policy.  However, where a UIM policy is involved, an offset is allowed for the full amount of the underlying insurance policy, even if it was not paid.  Mann v. Farmers Insurance, 108 Nev. 648; 836 P.2d 620 (1992).

760290_car_wreck An offset is allowed against personal UM / UIM where the employer provides the UIM coverage.  Phelps v. State Farm, 112 Nev. 675; 917 P.2d 944 (1996).

No offset is allowed if the worker’s compensation provider is entitled to reimbursement from the recovery.  Rubin v. State Farm, 118 Nev. 299, 43 P.3d 1018 (2002).

And no offset allowed where the person bought their own insurance and paid premiums for the same.

Phelps, supra.

About Michael Mills

Mr. Mills practices in the area of civil litigation and appeals, with particular experience in matters involving trucking liability, insurance defense, insurance coverage, premises liability, products liability and defense of personal injury. Mr. Mills is a member of the Trucking Insurance Defense Association, the Defense Research Institute Trucking Committee and the Nevada Motor Transport Association. Mr. Mills is licensed to practice before the Nevada Supreme Court and the Utah Supreme Court. He is also licensed to appear before the United States Supreme Court, the U.S. District Courts for the Districts of Nevada and Utah, as well as the U.S. Court of Appeals for the Ninth Circuit. Mr. Mills has created 3 Blogs for the benefit of the insurance industry. He serves as editor and publisher of the Nevada Insurance Law Blog, the Nevada Coverage and Bad Faith Blog and the Nevada Trucking Law Blog.

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