Underinsured/Uninsured Motorist (UM/UIM) coverage is designed to protect drivers when the at-fault party doesn’t have enough insurance to fully cover injuries or property damage. The class actions against Loya Insurance Co. and its affiliate Young America Insurance Co. focus on how UIM benefits were calculated for New Mexico policyholders who bought UM/UIM coverage between Oct. 1, 2010, and Feb. 28, 2022. Plaintiffs allege the insurers reduced or denied UIM payouts by applying an “offset” tied to third-party liability limits—meaning the companies treated the other driver’s policy limits as a deduction from what the insured could recover—without properly disclosing that practice and in a way that New Mexico law purportedly does not allow. The lawsuits (Apodaca v. Young America and Swiech v. Loya) were filed because policyholders say this offset misrepresented the real value of the coverage they paid for and unlawfully shrank claim payments when accidents happened, turning a safety-net product into something less protective than advertised. Loya denies wrongdoing but agreed to a $1.95 million settlement, which is significant because it offers two practical remedies: eligible class members can request a readjustment of past bodily injury and/or property damage UIM claims (with up to $800,000 set aside for recalculations), or they can opt for partial refunds of UM/UIM premiums paid during the class period. Beyond New Mexico, the dispute reflects a recurring industry flashpoint—how insurers coordinate benefits between first-party UM/UIM coverage and at-fault drivers’ liability coverage—an area heavily shaped by state statutes and insurance-department oversight, where courts and regulators often scrutinize offsets, disclosures, and policy language to ensure UM/UIM coverage delivers the consumer protection the law intends.