Uninsured Motorist Coverage - Scope of the Term - "Uninsured Motorist"; Porter v. Empire Fire and Marine Insurance Co.

The appellant, James T. Porter, was involved in an automobile accident in which he and four other persons were injured. The tortfeasor was insured to the extent of the statutory minimum ($10,000-$20,000) as provided for by the Arizona Financial Responsibility Act.' The appellant subsequently obtained a judgment against the tortfeasor for $10,000. He then entered into a proposed settlement with the tortfeasor's insurer under which he was to receive $2,500 of the $20,000 of insurance proceeds available for allocation among the injured parties. Mr. Porter notified his insurer (the appellee) of the proposed settlement and requested the appellee satisfy the balance of damages under the uninsured motorist provision of his policy.

The appellee denied coverage and refused to approve or disapprove the proposed settlement. Subsequently, the appellant settled with the tortfeasor's insurer as agreed, and brought an action against the appellee for the $7,500 balance under his uninsured motorist coverage.