Insurance carrier denies uninsured motorist claim due to workers’ compensation settlement

A St. Clair County man is being sued by his employer’s insurance carrier, which alleges it did not consent to a workers’ compensation claim settlement relating to injuries from a collision.

State Auto Property and Casualty Insurance Company filed a complaint Sept. 9 in the U.S. District Court for the Southern District of Illinois against Kenneth Grasle.

According to State Auto’s complaint, Grasle was employed by its insured Schulte Supply, which was covered under a business auto insurance policy. The plaintiff alleges Grasle made a claim under Schutle’s uninsured motorist policy as the result of a collision on May 18, 2018, in which he suffered neck, back shoulder and other injuries. State Auto claims Grasle filed for an adjustment of claim with the Illinois Workers’ Compensation Commission on Dec. 12, 2018, and that Grasle, his attorney and the attorney for Hartford Insurance settled the workers’ compensation claim in April.

State Auto alleges it never consented to the workers’ compensation claim for various reasons, including because the settlement only provided for recovery for Grasle’s “lumbar spine” and exposed them to liability for his neck injury.

State Auto seeks compensation of more than $75,000 and all other proper relief.

This article was first published in Madison Record.

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