Progressive Classic Insurance of Madison proposed paying $50,000, the policy limit, to the estate of Everardo Chimal Lopez, according to a judgment signed earlier this week by Walworth County Judge John Race.
Lopez, 54, was killed Nov. 3, 2007, on County H when a vehicle driven by Hart, who was 16 at the time, crossed into the oncoming lane of traffic and struck his vehicle head-on.
In exchange for the payment, Progressive was dismissed as a defendant in the lawsuit that was filed last October by the victim's family.
Also named as defendants in the suit were the party hosts suspected of giving Hart a nearly full case of beer that she drank days later and prior to the crash. Party throwers named in the suit were Manuel, Monica and Rosa Gutierrez, N3345 University Road, Geneva Township.
The suit was filed by Maria Teresa Olivo Guzman, Diego Chimal Olivo, Eric Chimal Olivo, Christina Chimal Olivo and Cecila Chimal Olivo, all of 135 Franklin St., Delavan.
Hart, formerly of Genoa City, is serving a seven-year prison term at Taycheedah Correctional Institution in Fond du Lac on a conviction of homicide by intoxicated use of a motor vehicle.
According to the lawsuit, the Gutierrez family provided alcohol at a party to underage drinkers in late October 2007.
On Nov. 2, 2007, Hart drank the beer. At about 2:30 a.m. Nov. 3, Hart was driving on County H and crashed into Lopez's vehicle, according to the lawsuit. Lopez was on his way to pick up his two sons from work.
Hart's blood-alcohol level was 0.128 percent, well above the legal limit, according to police records.
Although she was only 16, Hart was prosecuted as an adult.