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Appeals court asked to decide whether UIM insurer must cover prejudgment interest beyond policy limits
Summary
In Illinger v. State Farm, the petitioner urged the court to read a New Hampshire statute and policy ambiguity to allow prejudgment interest and costs in an underinsured-motorist recovery; State Farm said policy limits reflect the insured’s bargained-for cap and New Hampshire precedent limits insurers’ liability for interest in the UIM context.
Jim Grumbach, appealing for the plaintiff, said State Farm’s UIM policy language is ambiguous with respect to interest and costs and that New Hampshire statute RSA 524-B (as argued) supports awarding prejudgment interest despite a policy limit. Grumbach urged that the phrase "regardless of the amount of any…
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