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FARMERS INS. CO. OF ARIZONA v. SANDOVAL

No. 29,537.

253 P.3d 944 (2011)

2011-NMCA-051

FARMERS INSURANCE COMPANY OF ARIZONA, Plaintiff-Appellee, v. Christine SANDOVAL and Melissa Carter, Defendants-Appellants.

Court of Appeals of New Mexico.

April 4, 2011.

Attorney(s) appearing for the Case

O'Brien & Ulibarri, P.C., Daniel J. O'Brien , Albuquerque, NM, for Appellee.

Whitener Law Firm, P.A., Thomas M. Allison , Albuquerque, NM, for Appellants.

OPINION

WECHSLER, Judge.

{1} In this appeal, we must determine whether an insurer is entitled to offset an injured insured's award of underinsured motorist (UIM) benefits by a tortfeasor's liability policy limits when the insured receives an amount less than policy limits due to a contractual exclusion for punitive damages. In light of the remedial purpose of NMSA 1978, Section 66-5-301 (1983), we conclude that the insurer's offset is limited...

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