Simendinger v. National Union Fire Insurance Co.

Summary

The Delaware Supreme Court held that a workers’ compensation insurer could not assert a lien against underinsured motorist benefits paid under an employer-purchased UIM policy. Interpreting 19 Del. C. § 2363(e), the court concluded that the 1993 statutory amendments eliminated the insurer’s ability to obtain reimbursement from the UIM payments and reversed the Superior Court’s judgment.

Holdings

1. Under the post-1993 version of 19 Del. C. § 2363(e), a workers' compensation insurer may not assert a priority lien against UIM payments made pursuant to an employer's UIM policy.
2. The UIM policy exclusion is enforceable, and the Superior Court erred as a matter of law by holding it unenforceable and enforcing the workers' compensation lien.

Questions Presented

1. Whether 19 Del. C. § 2363(e) permits a workers' compensation insurer to assert a lien against UIM benefits paid under an employer's UIM policy.
2. Whether the UIM policy exclusion barring the direct or indirect benefit of a workers' compensation insurer is unenforceable because it conflicts with 19 Del. C. § 2363(e).

Disposition

reversed_and_remanded