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JOHNSON v. AMERICAN FAMILY MUT. INS. CO.

No. C5-87-826.

426 N.W.2d 419 (1988)

Richard Alan JOHNSON, Respondent, v. AMERICAN FAMILY MUTUAL INSURANCE COMPANY, Appellant.

Supreme Court of Minnesota.

July 1, 1988.

Attorney(s) appearing for the Case

Joe E. Thompson, Willmar, for appellant.

John Kallestad, Willmar, for respondent.

Heard, considered and decided by the court en banc.

OPINION

AMDAHL, Chief Justice.

Appellant, American Family Mutual Insurance Company, appeals from a court of appeals decision which reversed an arbitration award. The court of appeals reviewed the arbitrators' determination de novo and concluded that the measure of an insurer's liability for underinsured motorist benefits is the amount by which an injured insured's damages exceed the liability limits of the primarily culpable tortfeasor. We agree that...

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