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NJM v Klama DOCKET NO. A-1382-09T2

Case Conclusion Date: 04.01.2011

Practice Area: Insurance

Outcome: The argument that I asserted for NJM was accepted by the App. Div. and trial court ruling was affirmed.

Description: Klama, a motorcyclist, was involved in an accident with an uninsured vehicle. Klama was the named insured under a motorcycle insurance policy issued by Foremost, which contained policy limits for uninsured motorist (UM), bodily injury coverage, in the amount of $15,000 per person and $30,000 per accident. At the time of the accident, Klama was a resident of the household of his mother and grandfather. Consequently, Klama also was covered under his mother's and grandfather's auto insurance policies. Klama's mother was insured under a policy issued by NJM, and Klama's grandfather was insured under a Proformance policy. Both policies provided UM coverage of up to $100,000 per person and $300,000 per accident. However, both policies included "step-down" clauses, which limit the amount of UM coverage available under the policy. Klama argued that the NJM step down provision was vague and unenforceable.

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