Keenan v. Indus. Indem. Ins. Co
In Keenan v. Indus. Indem. Ins. Co., 108 Wn.2d 314, 738 P.2d 270 (Wash. 1987), the Washington Supreme Court addressed a similar offset clause for payments made under a no-fault clause commonly called "PIP" that included medical expense and income continuation benefits.
The policy in Keenan provided for reimbursement of PIP payments if the insured recovered "from another." Id. 738 P.2d at 272. The insured received $ 25,000 from the tortfeasor and proceeded to arbitration under her UIM coverage.
Her UIM award was $ 44,478.28. The insurance company deducted the $ 25,000 paid by the tortfeasor and $ 9,999.90 PIP payments from the arbitration award. Emphasizing the fact that the insured was fully compensated, and that the setoff did not reduce UM coverage below policy or statutory limits, the Washington Court affirmed.