This case involved a dispute over underinsured motorist (UIM) coverage in an auto insurance policy issued by Prudential to the Klinger family. After David Klinger was killed by an underinsured drunk driver, whose insurer paid the $50,000 policy limit, Prudential reduced its $250,000 UIM limit by that amount and paid only $200,000. Klinger sued for a declaratory judgment that the policy's reducing clauses were invalid under Wis. Stat. § 632.32(5)(i) and prior precedent in Hanson v. Prudential. The court of appeals affirmed summary judgment for Prudential, holding that the reducing clauses complied with the statute and that Hanson had been superseded by later decisions such as Folkman v. Quamme, which upheld similar policy language allowing reductions for payments from the at-fault party.

business & regulatory