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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 In a footnote, Judge James Kirsch noted that I.C. Section 27-7-5-1.5 has been repealed effective Jan. 1, 2010.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. How nice, on the day of my car accident on the way to work at the Indiana Supreme Court. Unlike the others, I did not steal any money or do ANYTHING unethical whatsoever. I am suing the Indiana Supreme Court and appealed the failure of the district court in SDIN to protect me. I am suing the federal judge because she failed to protect me and her abandonment of jurisdiction leaves her open to lawsuits because she stripped herself of immunity. I am a candidate for Indiana Supreme Court justice, and they imposed just enough sanction so that I am made ineligible. I am asking the 7th Circuit to remove all of them and appoint me as the new Chief Justice of Indiana. That's what they get for dishonoring my sacrifice and and violating the ADA in about 50 different ways.

  2. Can anyone please help this mother and child? We can all discuss the mother's rights, child's rights when this court only considered the father's rights. It is actually scarey to think a man like this even being a father period with custody of this child. I don't believe any of his other children would have anything good to say about him being their father! How many people are afraid to say anything or try to help because they are afraid of Carl. He's a bully and that his how he gets his way. Please someone help this mother and child. There has to be someone that has the heart and the means to help this family.

  3. I enrolled America's 1st tax-free Health Savings Account (HSA) so you can trust me. I bet 1/3 of my clients were lawyers because they love tax-free deposits, growth and withdrawals or total tax freedom. Most of the time (always) these clients are uninformed about insurance law. Employer-based health insurance is simple if you read the policy. It says, Employers (lawyers) and employees who are working 30-hours-per-week are ELIGIBLE for insurance. Then I show the lawyer the TERMINATION clause which states: When you are no longer ELIGIBLE! Then I ask a closing question (sales term) to the lawyer which is, "If you have a stroke or cancer and become too sick to work can you keep your health insurance?" If the lawyer had dependent children they needed a "Dependent Conversion Privilege" in case their child got sick or hurt which the lawyers never had. Lawyers are pretty easy sales. Save premium, eliminate taxes and build wealth!

  4. Ok, so cheap laughs made about the Christian Right. hardiharhar ... All kidding aside, it is Mohammad's followers who you should be seeking divine protection from. Allahu Akbar But progressives are in denial about that, even as Europe crumbles.

  5. Father's rights? What about a mothers rights? A child's rights? Taking a child from the custody of the mother for political reasons! A miscarriage of justice! What about the welfare of the child? Has anyone considered parent alienation, the father can't erase the mother from the child's life. This child loves the mother and the home in Wisconsin, friends, school and family. It is apparent the father hates his ex-wife more than he loves his child! I hope there will be a Guardian Ad Litem, who will spend time with and get to know the child, BEFORE being brainwashed by the father. This is not just a child! A little person with rights and real needs, a stable home and a parent that cares enough to let this child at least finish the school year, where she is happy and comfortable! Where is the justice?

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