Safeway Insurance Company v. Hadary

Plaintiffs were involved in auto accident with driver of rental car who had decline rental company's liability insurance supplement. Plaintiffs received $40,000 policy limits from rental car driver's own insurer. Plaintiffs claimed underinsured motorist coverage and demanded arbitration of their claims under their own auto insurance policy. Plaintiff insureds are not required to exhaust rental company's financial responsibility liability, as that would deny the insureds the economic value of their underinsured motorist coverage for which they paid a premium. Because Plaintiffs' insurer is obligated to comply with process for handling underinsured motorist claims per policy: by agreement, or if no agreement then by arbitration. (DELORT and CUNNINGHAM, concurring.)