State Farm Mutual Insurance v. Farmers Insurance Exchange

450 P.2d 458, 22 Utah 2d 183, 1969 Utah LEXIS 579

• Court: Utah Supreme Court
• Decided: February 11, 1969
• Docket: 11350
• Status: Published

Opinions

HENRIOD, Justice.

Appeal from a summary judgment holding that a provision in an insurance policy for the subrogation of the insured’s claim for medical payments against a tortfeasor-is valid and not against public policy. Affirmed with costs to respondent.

Subrogation springs from equity concluding that one having been reimbursed for a specific loss should not be entitled to a second reimbursement therefor. This principle has been accepted in the insurance field with respect to property damage, and with respect to medical costs by an impressive weight of authority.¹ On the other hand it is generally conceded that a claim or cause of action for personal injuries arising out of tort is not assignable.² Arguments are persuasive for and' against any such distinction. Nonetheless, we presently are constrained to affirm the universal rule of non-assignability of personal injury claims, but also the majority rule as to subrogation provisions contained in insurance policies with respect to medical expenses in cases such as that here.

We have been requested to determine but two points: 1) Whether the policy provision is valid and enforceable, and we say it is, and 2) Whether timely notice of subro-gation rights was given here in order to protect plaintiff’s subrogation claim. The trial court said adequate notice was given and the record supports such conclusion, which we affirm.

CROCKETT, C.J., and ELLETT, J., concur.

1 . 19 A.L.R.3d 1055 (1968); Wilson v. Tenn. Farmers Mut. (Tenn.1966), 411 S.W.2d 699; Tenn. Farmers Mut. Insurance Co. v. Rader (Tenn.1966), 410 S.W.2d 171; Anderson v. Allstate Ins. Co. (1966), 266 N.C. 309, 145 S.E.2d 845; Mich. Med. Serv. v. Sharpe (1954), 339 Mich. 574, 64 N.W.2d 713; Nat. Un. Fire Ins. Co. v. Grimes (1967), 278 Minn. 45, 153 N.W.2d 152.

2 . 40 A.L.R.2d 502, II (1955).