Vanwanseele-Walker
Mercury Insurance v. Vanwanseele-Walker
Opinion
Opinion
Haller, J.
A passenger is fatally injured in a single-vehicle accident. The passenger’s heirs recover money from the negligent driver’s insurer and from the car manufacturer. The negligent driver’s insurance policy limits are less than the passenger’s underinsurance motorist policy limits. Must the heirs’ recovery under the passenger’s underinsurance policy be offset by the amount received from the car manufacturer? As we shall explain, the answer clearly mandated by Insurance Code section 11580.2, subdivision (PX4) is that the insurance benefits are reduced by the amount received from the car manufacturer.
Facts
The facts are undisputed. Michael Walker was a passenger in a Toyota owned and driven by Kevin Rausis. Walker and two other passengers were killed when the Toyota was involved in a single-vehicle accident.
When the accident occurred, Walker had an automobile insurance policy with Mercury Insurance Company (Mercury), providing him with underinsured bodily injury coverage of $100,000 per person and $300,000 per accident. Rausis had an automobile insurance policy with California Casualty with bodily injury limits of $30,000 per person and $60,000 per accident.