Lou Ann Downey and Delbert Downey v. Travelers Property Casualty Insurance Company

Summary

The court answered the certified question affirmatively, holding that insureds who settle with and release a tortfeasor without first notifying their underinsured-motorist insurer forfeit UIM coverage when their only excuse is ignorance of the policy's coverage. Because the Downeys possessed the policy and were represented by counsel, their asserted lack of knowledge was unreasonable as a matter of law, making summary judgment for Travelers proper. Justice Murdock, concurring in the result, questioned whether an additional notice-based judicial rule should apply beyond the existing settlement-consent framework.