Anthony Vella was injured in a car accident caused by Carol Hopkins. Both Vella and Hopkins were insured by State Farm. Vella asserted claims against Hopkins for causing the accident and also filed a claim under his own Underinsured Motorist (“UIM”) policy with State Farm.
A Pennsylvania driver can buy UIM coverage to protect himself in the event he is in an accident with another driver who does not have sufficient insurance coverage. In such a case, the UIM policy provides coverage for damages that exceed the at-fault driver’s coverage. Vella alleged that the value of his claims exceeded the coverage limits under Hopkins’ insurance policy, and therefore he was entitled to benefits under his own UIM policy.
State Farm refused to pay benefits for either the Hopkins or UIM claim. Vella filed a lawsuit against State Farm, contending that State Farm acted in bad faith in its handling of the UIM claim, including by appointing the same adjuster to handle both the Hopkins and UIM claims.
The United States District Court for the Middle District of Pennsylvania denied State Farm’s motion to dismiss, finding that Vella had sufficiently pled a cause of action against State Farm for its handling of his UIM claim, particularly in permitting the same claims representative to be in a conflicted position by handling both claims. As a result, Vella’s claim will proceed in court, and the court may ultimately determine the amount of benefits to which Vella is entitled.
Without UIM coverage, an accident victim may not be fully compensated if he or she is injured by another motorist who does not maintain enough insurance coverage.
The attorneys of Supinka & Supinka, PC are experienced in handling claims arising from automobile accidents. For more information and a consultation, please call (724) 349-6768.
