"Serious Injury": Not Required For Supplementary Underinsured Coverage

In Raffellini v. State Farm, ---N.Y.S.2d---, 2006 WL 3025825 (2nd Dept., 2006), the issue of whether an insured must have suffered a "serious injury" as defined by N.Y. Insurance Law §5102(d) in order to recover supplementary underinsured motorist coverage was considered. Upon statutory review, the Court determined that although proof of a "serious injury" is required in order for an insured to receive uninsured motorist coverage, no such requirement existed for underinsured coverage. Accordingly, an insured is entitled to supplementary underinsured coverage despite lack of a "serious injury" and contractual language mandating same. As such, defendants' motions for summary judgment with respect to the "serious injury" threshold in litigated SUM cases are likely to be denied unless the legislature changes the regulations governing supplementary underinsured benefits. We will keep you abreast of any new developments with regard to this issue.

Prepared by Kristen M. Walder