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September 27, 2007

Interesting Insurance Statute Case out of Alabama

In Fed. Mut. Ins. Co. v. Vaughn, 961 So.2d 816 (Ala. 2007),the Alabama Supreme Court issued an interpretation of first ipression as to whether an employer could reject uniderinsured coverage, wholly or in part. The statute only gave the insured the right to "reject" coverage, but the insured had taken limited amounts of under-insurance coverage. The court held that "because the greater typically includes the lesser, the right ot reject totally UM coverage implies the righ to reject it partially." I couldn't find the opinion on line for free...

September 27, 2007 in Current Affairs | Permalink

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