The Supreme Court of Wisconsin ruled that an insurer may not deduct a reimbursement owed to a workers compensation carrier from the UIM payment owed to the insured. The case is Secura Supreme Ins. Co. v. Estate of Huck, 986 N.W.2d 810 (Wis. 2023).
Daniel Huck was employed by the village of Mount Pleasant (the Village) when he was killed by a motorist while on the job. After Huck’s death, his estate (the Estate) received a payment for $35,798.04 from the Village’s workers compensation carrier. The Estate then sued the driver who had struck and killed Huck (the other driver). The other driver’s auto insurer tendered a payment for $25,000 to the Estate, which represented the other driver’s policy limits but was insufficient to cover Huck’s damages.