Opinion ID: 1952229
Heading Depth: 1
Heading Rank: 3

Heading: Prior Precedents Hurst and Peebles

Text: This Court has recently examined the statutory provisions relating to uninsured and underinsured motorist coverage in two separate opinions. The statutory operation of uninsured motorist coverage was decided in Hurst v. Nationwide Mutual Insurance Co., Del.Supr., 652 A.2d 10 (1995). In Hurst, this Court held that 18 Del.C. § 3902(b) (Section 3902(b)) mandates that any reduction provided for by Section 3902(b)(3) must be deducted from the total amount of the insured claimant's bodily injuries and not from the limits of the insured claimant's uninsured coverage. Id. at 13-14. This Court subsequently held that the logical operation of Section 3902(b), as described by this Court in Hurst, also applied to underinsurance coverage. See Nationwide Mut. Auto. Ins. Co. v. Peebles, Del.Supr., 688 A.2d 1374, 1377 (1997). [1] In Peebles, this Court noted that the statute defines an underinsured driver as a tortfeasor with liability policy limits that are less than the limits of the claimant's uninsured motorist coverage. Id. An underinsured motor vehicle is one for which there may be bodily injury liability coverage in effect, but the limits of bodily injury liability coverage under all bonds and insurance policies applicable at the time of the accident total less than the limits provided by the uninsured motorist coverage. 18 Del.C. § 3902(b)(2) (emphasis added). In Peebles, this Court held that the definition of underinsurance in Section 3902(b)(2) operates as a prerequisite to a right of recovery from the claimant's underinsurance motorist policy. Nationwide Mut. Auto. Ins. Co. v. Peebles, 688 A.2d at 1378. Thus, in Peebles, we again held that the presentation of record evidence which comports with the unambiguous definition in Section 3902(b)(2) is a condition precedent to pursuing an underinsurance claim. Id. at 1378 n. 2; accord Allstate Ins. Co. v. Gillaspie, Del.Super., 668 A.2d 757 (1995), aff'd, Del.Supr., No. 327, 1995, 1996 WL 21056, Hartnett, J. (Jan. 10, 1996) (ORDER). [2]