Insurance Company Required to Participate in Injured Person's Underinsured Motorist Arbitration.
KARAMOLEGOS v. YUNGER Appellate Division, A-991-06T1, October 16, 2007, not approved for publication. Law Division order that required that the defendant/third-party plaintiff insurer of the plaintiff appear at underinsured motorist arbitration within 90 days affirmed substantially for the reasons expressed by the Law Division; the plaintiff was injured in an accident with the defendant driver in December 2002; in February 2004, the driver and the defendant owner of the vehicle he was operating offered to settle, and the plaintiff's attorney requested permission from the insurer to accept the offer and to pursue a UIM claim under Longworth v. Van Houten; in December 2004, the plaintiff filed her automobile negligence action; in January 2005, the insurer stated its parameters for UIM arbitration, which the plaintiff's attorney accepted; the insurer did not respond thereafter, and the plaintiff accepted the settlement in August 2005; the insurer then rejected the plaintiff's claim for UIM benefits, asserting that its subrogation rights had been jeopardized by the plaintiff's failure to give notice before settling; however, the Law Division properly determined that the plaintiff had substantially complied with both Longworth and Rutgers Cas. Ins. Co. v. Vassas.
source: NJ Lawyer
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