Liberty Mutual Fire Ins. v. Vafi CA2/4
This appeal arises from an underinsured motorist arbitration between respondent Mehrangiz Vafi and her insurer, appellant Liberty Mutual Fire Insurance Company (Liberty Mutual). Based on Vafi’s automobile policy, the arbitration was limited to determining the damages that Vafi could recover from the underinsured motorist. The arbitration expressly omitted from consideration the scope of Liberty Mutual’s coverage under the policy. The arbitrator issued an award in favor of Vafi for $335,983.42. Thereafter, Liberty Mutual tendered a check to Vafi for $271,335.66 to cover her UIM claim. Liberty Mutual arrived at that amount by deducting from the arbitration award offset credits for a third-party settlement that Vafi had reached with the underinsured motorist’s insurer ($50,000), and medical expenses Liberty Mutual had paid under Vafi’s medical payment coverage ($14,647.76).
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