Matter of Government Empls. Ins. Co. v. Lee

Summary

The New York Appellate Division, Second Department, affirmed denial of GEICO's petition to permanently stay arbitration of Kuman Lee's supplementary uninsured/underinsured motorist claim. The court held that the GEICO policy's $300,000 single per-person limit exceeded the Allstate policy's $100,000 per-person limit, triggering SUM coverage under Insurance Law § 3420(f)(2).

Holdings

1. The GEICO SUM provision was triggered because the Allstate policy provided a lesser per-person bodily-injury liability limit than the GEICO policy, notwithstanding that both policies provided $300,000 per-accident limits.
2. GEICO was not entitled to a permanent stay of arbitration, and the parties were properly directed to proceed to arbitration.

Questions Presented

1. Whether the GEICO SUM provision was triggered when the tortfeasor's split-limit policy provided $100,000 per person and $300,000 per accident, while GEICO's policy provided a $300,000 single limit per person and per accident.
2. Whether GEICO was entitled to a permanent stay of arbitration under CPLR article 75.

Disposition

affirmed