AMERICAN FAMILY MUT. INS. CO. v. BAUMANN

No. CX-89-616.

459 N.W.2d 923 (1990)

AMERICAN FAMILY MUTUAL INSURANCE COMPANY, Respondent, v. Eleanor C. BAUMANN, et al., Petitioners, Appellants.

Supreme Court of Minnesota.

August 31, 1990.


Attorney(s) appearing for the Case

Mary C. Ivory, Lyons Sawicki & Associates, P.A., St. Paul, for appellants.

Mark L. Vandelist, Cousineau, McGuire, Shaughnessy & Anderson, Chartered, Minneapolis, for respondent.

Heard, considered, and decided by the court en banc.


COYNE, Justice.

At issue here is the adequacy of an insured's notice to her underinsurer of a proposed or tentative settlement which would prevent the accrual of the underinsurer's right of subrogation. The district court ruled that the insured had forfeited her rights under the underinsured motorist coverage of her automobile insurance policy, and the court of appeals affirmed. We reverse.

On May 21, 1982 Eleanor Baumann was injured in a collision with a...

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