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Auto Insurance Benefits May Be Reduced By Amount of Workers' Compensation Benefits
Description North Carolina law allows an offset to auto insurance policies covering uninsured motorists by sums received from workers' compensation benefits that arose from the same incident.
Topic Insurance
Key Words Uninsured Motorist, Workers' Compensation
C A S E   S U M M A R Y
Facts McMillan was injured in a car accident acting within the scope of employment. The other driver was uninsured, so McMillan's uninsured motorist (UM) coverage applied. McMillan also received workers' compensation benefits, which had totaled $78,000 at the time of this suit. The auto UM provision stated that damages paid under the policy would be reduced by sums paid under workers' compensation. The issue before the court was it this provision was enforceable.
Decision "McMillan is covered by both a workers' compensation policy paid for by his employer and by UM policies paid for by persons other than his employer. We hold that under the clear wording of [North Carolina insurance statute], the limit of liability provision in defendants' policies at issue in this action is authorized and defendant UM carriers are entitled to reduce coverage to Mr. McMillan by the amount of the workers' compensation he has already received."
Citation McMillan v. North Carolina Farm Bureau Mut. Ins. Co., ---S.E.2d--- (1998 WL 57504, Sup. Ct., NC)
or
495 S.E.2d 352 (Sup. Ct., N.C., 1998)

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