Insurer entitled to deduct medical payments from UIM limits
In Zdeb v. Allstate Ins. Co. (Ill. App., First Dist., no. 1-09-2774, 9-17-10), Zdeb's auto policy with Allstate provided $100,000 in UIM coverage and $50,000 in MP coverage. The policy allowed a setoff for medical payments. Zdeb was injured in an auto accident and had damages above the UIM limit. The at-fault driver paid his $50,000 limit.
When Allstate paid Zdeb only $38,952.53 ($50,000 less $11,047.47 in medical payments), she sued, claiming that to allow a setoff where there is no double recovery violates public policy. The appellate found the MP setoff to be consistent with the underinsured motorist statute, 215 ILCS 5/143-2(4), the purpose of which is to "place the insured in the same position he would have occupied if injured by a motorist who carried liability insurance in the same amount as his [UIM coverage]. The court thus affirmed the circuit court's grant of summary judgment to Allstate.
