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Insurer must provide underinsured coverage

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An insurance policy that doesn't provide uninsured or underinsured motorist coverage to all insureds is contrary to public policy based on Indiana statute, affirmed the Indiana Court of Appeals. Based on the statute, the insurance company is required to provide $500,000 in underinsured motorist coverage to a man injured while driving a company-provided motorcycle.

In Joseph Balagtas and Federated Mutual Insurance Co. v. Harry Joe Bishop, No. 79A02-0903-CV-239, Federated Mutual Insurance appealed the trial court order denying its motion for summary judgment and granting Harry Bishop's motion for summary judgment in his claim for underinsured motorist coverage. Bishop is an employee of Eagle Motors, who is insured through Federated. Eagle provided Bishop a demo motorcycle for business and personal use with full coverage insurance. While he was driving it during personal use, he was hit by Joseph Balagtas and injured. Bishop's damages exceeded Balagtas' policy limits so he sought payment under the UIM of Eagle's policy. Federated claimed he wasn't covered because Eagle elected to only have UM/UIM coverage for directors, officers, partners, or owners of the named insured and family members who qualify as insureds. Bishop didn't fit any of those titles.

The issue for the appellate court to decide was if Eagle could elect limits for UM/UIM coverage for some insureds and decline the same coverage for other insureds. Indiana Code Section 27-7-5-2 says an insurer is required to make available UM and UIM coverage in limits at least equal to a policy's bodily injury limits of liability. Federated argued that statute didn't apply to them because I.C. Section 27-7-5-1.5 states an insurer is not required to make available UM/UIM coverage in connection with the issuance of a commercial vehicle policy. The appellate court rejected that argument and held Federated intended to comply with I.C. Section 27-7-5-2 based on its policy language. In a footnote, Judge James Kirsch noted that I.C. Section 27-7-5-1.5 has been repealed effective Jan. 1, 2010.

Under Indiana Code Section 27-7-5-2(b), the insured may reject on behalf of all named insureds and other insureds either the UM or UIM coverage provided or both the UM and UIM coverage. The statute doesn't say that the named insured may reject coverage for some, but not all of the named insureds, so election or rejection of coverage must apply to everyone, wrote Judge Kirsch.

"Indiana Code section 27-7-5-2 is a mandatory coverage, full-recovery, remedial statute," he wrote. "Insurers operating in Indiana are required to set minimum standards of protection that the legislature has deemed acceptable. We will not approve any clause, exception, or exclusion that attempts to subvert or narrow the intent of the legislature. Any language in an insurance policy that dilutes statutory protections is contrary to public policy."

 

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  1. Not enough copperheads here to care anymore, is my guess. Otherwise, a totally pointless gesture. ... Oh wait: was this done because somebody want to avoid bad press - or was it that some weak kneed officials cravenly fear "protest" violence by "urban youths.."

  2. Should be beat this rap, I would not recommend lion hunting in Zimbabwe to celebrate.

  3. No second amendment, pro life, pro traditional marriage, reagan or trump tshirts will be sold either. And you cannot draw Mohammed even in your own notebook. And you must wear a helmet at all times while at the fair. And no lawyer jokes can be told except in the designated protest area. And next year no crucifixes, since they are uber offensive to all but Catholics. Have a nice bland day here in the Lego movie. Remember ... Everything is awesome comrades.

  4. Thank you for this post . I just bought a LG External DVD It came with Cyber pwr 2 go . It would not play on Lenovo Idea pad w/8.1 . Your recommended free VLC worked great .

  5. All these sites putting up all the crap they do making Brent Look like A Monster like he's not a good person . First off th fight actually started not because of Brent but because of one of his friends then when the fight popped off his friend ran like a coward which left Brent to fend for himself .It IS NOT a crime to defend yourself 3 of them and 1 of him . just so happened he was a better fighter. I'm Brent s wife so I know him personally and up close . He's a very caring kind loving man . He's not abusive in any way . He is a loving father and really shouldn't be where he is not for self defense . Now because of one of his stupid friends trying to show off and turning out to be nothing but a coward and leaving Brent to be jumped by 3 men not only is Brent suffering but Me his wife , his kids abd step kidshis mom and brother his family is left to live without him abd suffering in more ways then one . that man was and still is my smile ....he's the one real thing I've ever had in my life .....f@#@ You Lafayette court system . Learn to do your jobs right he maybe should have gotten that year for misdemeanor battery but that s it . not one person can stand to me and tell me if u we're in a fight facing 3 men and u just by yourself u wouldn't fight back that you wouldn't do everything u could to walk away to ur family ur kids That's what Brent is guilty of trying to defend himself against 3 men he wanted to go home tohisfamily worse then they did he just happened to be a better fighter and he got the best of th others . what would you do ? Stand there lay there and be stomped and beaten or would u give it everything u got and fight back ? I'd of done the same only I'm so smallid of probably shot or stabbed or picked up something to use as a weapon . if it was me or them I'd do everything I could to make sure I was going to live that I would make it hone to see my kids and husband . I Love You Brent Anthony Forever & Always .....Soul 1 baby

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