Deanne Berrey was working for Curry Ice when she was injured in a car accident caused by Sheri Campbell who only had $100,000 in liability insurance coverage.
Berrey sued Campbell and also collected $103,224 in worker’s compensation benefits. In addition, Berrey claimed underinsured-motorist benefits under a $1 million policy that Travelers Indemnity Co. sold to Curry Ice.
Campbell’s insurer settled with Berrey for $100,000 but paid all of the policy proceeds to Curry Ice because of Curry’s worker’s compensation lien. When the arbitrators considered the underinsured motorist (UIM) claim, it decided that Berrey’s damages totaled $310,000. Travelers claimed that Section D.2.4 of its insurance policy permitted it to reduce the award ($310,000) to $210,000 because Berrey had already technically received $100,000 from Campbell’s insurance policy, which was paid directly to Curry Ice.