Propriety of UM Carrier Intervening in Underlying Suit Against Tortfeasor
I have a wreck with limited liability coverage, and some UM. I sent demands to both carriers, and settled the UM claim for less than that limit, but the liability carrier is low balling me. I filed suit vs. the tortfeasor. The UM carrier wants to intervene to protect its subro interest. What happens if the liability carrier tenders their limit in the suit? Wouldn't the UM carrier still have to waive subro or substitute payment?
Answer: The UM carrier, having paid its UM limit, is entitled to intervene to protect its subrogation right. Brown v. Patel, et al.,2007 OK 16, 157 P.3d 117. You are correct that, if the liability carrier tenders, the UM carrier could be put in a position of having to substitute or waive subro. Barnes v. Oklahoma Farm Bureau Mut. Ins. Co., 1993 OK CIV APP 168, 869 P.2d 852. Give thought to whether this might work out to where you can put the liability carrier in an excess bad faith posture by making a time-limited, policy limit demand and overcome the problem of the relatively low liability limit.
Posted on Wed, February 5, 2014
by Travis Law Office filed under