Plaintiff Can Not Recover Under Her Own Supplemental Uninsured/Underinsured Motorist Policy When Her Recovery Exceeded the Limit of that Policy
The Second Department explained how plaintiff’s supplemental uninsured/underinsured motorist (SUM) policy related to her recovery of damages under the policy when she, as a pedestrian, was struck by a car and recovered damages in excess of the SUM limit:
When a policyholder purchases supplemental uninsured/underinsured motorist (hereinafter SUM) coverage in New York, he or she is insuring against the risk that a tortfeasor’s underinsurance (or complete lack of insurance) will provide less protection for the policyholder than the policyholder provides to others when at fault in causing bodily injury … . SUM coverage is not a “stand-alone policy to fully compensate the insureds for their injuries” … .
Here, the respondent, who was struck by a car while walking in the street, had an automobile policy of her own. In that policy, she chose to provide coverage in the amount of $100,000 per person in the event she was at fault in causing bodily injuries. By paying for SUM coverage in the amount of $100,000 per person, she also ensured that she was protected for that same amount in the event that an uninsured or underinsured motorist caused her to sustain injuries. Although the respondent was injured, she received $400,000 from the tortfeasors, which is $300,000 more than the coverage she provided to others. Consequently, under paragraph 6 of her SUM endorsement, the amount she was entitled to recover under her SUM coverage was reduced to zero. Matter of Unitrin Auto & Home Ins Co v Gelbstein, 2013 NY Slip Op 05749, 2nd Dept 8-28-13