Key Takeaway
Learn about SUM (Supplemental Uninsured/Underinsured Motorist) coverage in NY. Essential protection when other drivers lack adequate insurance. Legal case analysis.
Matter of Progressive Cas. Ins. Co. v Beardsley, 2015 NY Slip Op 08522 (4th Dept. 2015)
This is that interesting coverage stuff that you have to read three times to figure out. But after my accident a 2 years ago, I cannot stress enough that everyone must have SUM coverage. It is inexpensive and will come in to play when you least expect it.
“Respondent thereafter submitted a claim for supplemental uninsured/underinsured motorist (SUM) benefits pursuant to a personal automobile policy issued by petitioner, Progressive Casualty Insurance Co. (Progressive), to his father, Jeffrey F. Beardsley (Beardsley), which listed respondent as an insured driver and household resident. Respondent also submitted a claim for SUM benefits under a commercial automobile policy issued by respondent Merchants Mutual Insurance Co. (Merchants) with respect to certain vehicles associated with Beardsley’s excavation business. Merchants disclaimed coverage on the ground that Beardsley was “insured as a corporation,” and the SUM coverage provided in its policy did not extend to respondent inasmuch as he was not a member of Beardsley’s excavation business and was not occupying an insured vehicle at the time of the incident. Respondent thereafter demanded arbitration with respect to his claims for SUM coverage under each policy. Progressive commenced this proceeding pursuant to CPLR article 75 seeking a temporary stay of arbitration pending the completion of discovery. In addition, Progressive sought an order determining that Merchants is a coinsurer for purposes of respondent’s SUM claims and that any SUM award be paid in proportion to each insurer’s policy limit”
“Where an automobile insurance policy contains a SUM provision and is issued to an individual, that individual and others in his or her family may be afforded SUM coverage under the policy when such person is injured in any vehicle, including a vehicle owned and insured by a third party” (Roebuck v State Farm Mut. Auto. Ins. Co., 80 AD3d 1126, 1127). “Where such a policy is issued to a corporation, however, the SUM provision does not follow any particular individual, but instead covers any person while occupying an automobile owned by the corporation or while being operated on behalf of the corporation’ ”
