Delaware Supreme Court Clarifies Carrier Reimbursement Rights in UIM Cases

A recent Delaware Supreme Court ruling in ProAssurance Group v. Manz clarifies the limits of workers’ compensation carriers’ reimbursement rights when injured employees recover under their underinsured motorist (UIM) policies.

The Court held that carriers may only recover the portion of a UIM award tied to “boardable” economic damages—such as wage loss and medical expenses—while noneconomic losses like pain and suffering remain protected.

For DCRB member insurers, the decision underscores the need to secure clear allocations of damages in settlements, coordinate closely with counsel, and adjust recovery expectations and reserving practices accordingly.

Read the complete Information Bulletin here.