by Ron E. Peck, Esq.

In the case of Ferguson v. Safeco Insurance Co. of America, 2008 WL 854841 (Mont.,2008), the Supreme Court of the State of Montana was asked to determine whether insureds could sue their insurance carrier in a class action suit, suing that insurance carrier for pursuing subrogation / reimbursement opportunities without first confirming that the insureds had been made whole.  In Montana, policies regulated by state law may not subrogate or seek reimbursement for claims paid until the claimant is made whole by the tortfeasor or other liable third party first.  Ordinarily, courts require the insured (and their attorney) to advise the insurance carrier that the insured has not been made whole, that the made whole doctrine applies, and provide evidence of the insured’s not being made whole.  In the case at hand, however, the insured sued the insurance carrier not because it ignored her claim of not being made whole, but rather, failed to investigate on its own whether the insured had been made whole prior to pursuing reimbursement opportunities. Read more