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bodily injury have been used up by payment of (a) us; and
judgments or settlements, or have been offered to (b) any other party or parties, in-
the insured in writing. cluding the owner or driver of
Notice of Tentative Settlement the underinsured motor vehicle,
1. The insured must: who may still be legally liable for
the insured’s damages;
a. inform us in writing of a tentative settle-
ment, if any, proposed by or on behalf of (2) consent to a jury trial if requested by
the owner or driver of the underinsured us;
motor vehicle; and (3) agree that we may contest the issues
b. give us a reasonable period of time to of liability and the amount of dam-
make a substitute payment to the insured ages; and
in an amount equal to such tentative set- (4) secure a judgment in that action. The
tlement offer. judgment must be the final result of an
2. If a substitute payment is made by us, then: actual trial and an appeal, if an appeal
is taken.
a. such payment shall be considered a pay-
ment made by or on behalf of the owner or 2. We are not bound by any:
driver of the underinsured motor vehicle; a. judgment obtained without our written
and consent; and
b. any recovery from or on behalf of the b. default judgment against any person or or-
owner or driver of the underinsured motor ganization other than us.
vehicle shall first be used to repay us the 3. Regardless of the amount of any award, includ-
amount of the substitute payment. ing any judgment or default judgment, we are
The decision to make a substitute payment not obligated to pay any amount in excess of
can only be made by us. A substitute the available limits under this coverage of this
payment to an insured does not reduce or policy.
increase the limits of coverage otherwise Limits
available to that insured under this cover-
age or any other coverage of this policy. 1. The Underinsured Motor Vehicle Coverage
3. If we elect to not make a substitute payment limits are shown on the Declarations Page un-
der “Underinsured Motor Vehicle Coverage –
within a reasonable period of time, then the ac- Bodily Injury Limits – Each Person, Each Ac-
ceptance of the tentative settlement by the in- cident”.
sured shall not be considered to have
prejudiced us with respect to our rights of sub- a. The most we will pay for all damages re-
rogation or reimbursement as to the owner or sulting from bodily injury to any one in-
driver of the underinsured motor vehicle. sured injured in any one accident,
Deciding Fault and Amount including all damages sustained by other
insureds as a result of that bodily injury, is
1. a. The insured and we must agree to the an- the lesser of:
swers to the following two questions: (1) the amount of all damages resulting
(1) Is the insured legally entitled to re- from that bodily injury reduced by the
cover compensatory damages from the sum of all payments for damages re-
owner or driver of the underinsured sulting from that bodily injury made
motor vehicle? by or on behalf of any person or or-
(2) If the insured and we agree that the answer ganization who is or may be held le-
to 1.a.(1) above is yes, then what is the gally liable for that bodily injury; or
amount of the compensatory damages that (2) the limit shown under “Each Person”.
the insured is legally entitled to recover b. Subject to a. above, the most we will pay
from the owner or driver of the underin- for all damages resulting from bodily in-
sured motor vehicle? jury to two or more insureds injured in the
b. If there is no agreement on the answer to same accident is the limit shown under
either question in 1.a. above, then the in- “Each Accident”.
sured shall: 2. These Underinsured Motor Vehicle Coverage
(1) file a lawsuit, in a state or federal limits are the most we will pay regardless of
court that has jurisdiction, against: the number of:

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