Background and Procedural History.

On September 23, 2015, while driving on the 101 freeway, Donald Carr was rear-ended by a vehicle operated by Michelle Louise Perez, sustaining physical injuries. Mr. Carr settled his bodily injury claim against Ms. Perez for her $15,000 “per person” third-party bodily injury policy limit. (Plaintiff Undisputed Material Fact (“UMF”) 3.) Wendee Carr (“Defendant”), Mr. Carr’s wife, is a signatory to the release with Ms. Perez’s insurance company, which specifically states: “This is not to be construed as a release of any UIM claim.” (Compl., Ex. B.)

At the time of the accident, Mr. Carr was insured under a policy of automobile liability insurance (“the Policy”) issued by Interinsurance Exchange of the Automobile Club (“Plaintiff”). The “Named Insured” on the Policy are “Carr, Wendee and Carr, Donald.” (Compl., Ex. A.) The Policy’s limits are $100,000 per person and $300,000 per accident. (Plaintiff UMF 2.)

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