State Farm Mutual Automobile Insurance Company, Plaintiff-Appellant v. Safeco Insurance Company, New Mexico…

Summary

The New Mexico Supreme Court held that the primary underinsured motorist (UIM) insurer must exhaust its policy limits before any secondary UIM insurers pay benefits, and that the statutory offset is applied within the UIM formula rather than awarded to any insurer; it also found that the Court of Appeals’ Jones decision conflicts with Tarango and is overruled. The Court reviewed the district court’s summary‑judgment rulings de novo.