Abstract
The movement to replace tort liability for automobile accidents with compulsory first-party insurance has resulted in the enactment of no-fault insurance schemes in twenty-five states. In order to place the burden of loss on the party primarily liable and to eliminate double recovery, the majority of these statutes entitle the no-fault insurer to recapture first-party benefits paid out to its insured. Section 31-41-11 of the Utah Automobile No-Fault Insurance Act (Utah No-Fault Act) is such a provision. In Allstate Insurance Co. v. Ivie, the Utah Supreme Court held that section 31-41-11 confers no right of subrogation on a no-fault insurer to funds received by its insured in a settlement with the tortfeasor. Rather, the insurer must recover funds it has paid out from the tortfeasor's insurer. Although Ivie accurately construed section 31-41-11 as precluding subrogation, serious inequities remain in the statute, which only the Utah legislature can resolve.
Recommended Citation
Barrus, Tracy R.
(1981)
"Allstate Insurance Co. v. Iwe:
Re-nbursement Between Insurers
Under Utah's No-Fault Act,"
Utah Law Review: Vol. 1981:
No.
2, Article 4.
Available at:
https://dc.law.utah.edu/ulr/vol1981/iss2/4