Provided below is the Connecticut statute which prohibits an insurance company from having subrogation rights against an owner or operator of an underinsured motor vehicle.
Sec. 38a-336b. Subrogation against owner or operator of underinsured motor vehicle prohibited. No insurer providing underinsured motorist coverage as required under this title shall have any right of subrogation against the owner or operator of the underinsured motor vehicle for underinsured motorist benefits paid or payable by the insurer.
James Jones is involved in an accident with Jimmy Johnson who causes a collision. Jimmy Johnson has an Allstate Insurance with a policy coverage of $20,000 per person. Allstate pays the full $20,000 to cover the claim. James has $100,000 coverage per person, of underinsured motorist claim. James claims and receives payment under his underinsured motorist coverage, under a State Farm policy. There is no right to subrogation as there was a payment on the underinsured motorist coverage.
(Without the prohibition, State Farm would be subrogated to the rights of James Jones, against Jimmy Johnson)
NOTE – The prohibition only applies to cases in which there is payment for underinsured motorist coverage. The statute does not apply to “uninsured motorist” coverage.
Robert M. Singer, Attorney at Law
2572 Whitney Avenue
Hamden, CT 06518
Serving all of Connecticut