In D'Adamo v. Erie Insurance Exchange and Holocher v. Erie Insurance Exchange, 2010 PA Super 77 (2010) the Superior Court found that liability coverage available to the tortfeasor under a personal umbrella policy was to be included in the offset clause and considered as a credit to the UIM carrier in the UIM claim. In that case, the plaintiff contended that the $1,000,000.00 in liability coverage under a personal umbrella policy issued to the tortfeasor was not to be applied as a credit in the underinsured motorist proceeding. The Superior Court found that the Motor Vehicle Financial Responsibility Law and the policy of insurance in question contemplated credits for all available liability coverage in the UIM proceeding. In this regard, the Court stated:
In other words, "available liability insurance" under both the MVFRL and Erie's policy provisions must take into account the tortfeasor's motor vehicle insurance and his personal umbrella liability policy limits, before the tortfeasor can be deemed underinsured.
Thus, the Court properly determined that all available liability insurance coverage is to be included as a credit in any underinsured motorist action. James Haggerty, Esquire of Swartz Campbell LLC was co-counsel for the insurer on the appeal.
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