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Justices rule on underinsured motorist coverage case

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The Indiana Supreme Court has held that a tortfeasor’s vehicle was underinsured according to state statute because the benefit amount actually paid to a woman was less than the per-person limit of liability of the underinsurance endorsement of an insurance policy that applied to all the family members involved in the accident.

In Hannah Lakes v. Grange Mutual Casualty Company, No. 89S05-1109-CT-531, the justices unanimously agreed with the result the Indiana Court of Appeals reached, but for a different reason.

The case involves a severe auto accident in 2004 where Hannah Lakes and several family members were injured. The tortfeasor, James Isaacs, had an insurance policy that limited bodily injury liability to $25,000 per person and $50,000 per accident. Lakes’ sister, Anitra, was driving and had an insurance policy with underinsured motorist coverage for $50,000 per person and per accident. Their father, Jerry Lakes, also had UIM coverage for $100,000 per person and $300,000 per accident.

After the Lakeses filed a state suit against Isaacs and Anitra Lakes’ carrier, Grange Mutual Casualty Company, Isaacs’ carrier paid its limit but Grange filed for summary judgment on the basis that the tortfeasor’s vehicle was not an underinsured vehicle as a matter of law because the per-accident limit of his policy was equal to the UIM per-accident limit of Anitra’s policy. The trial court granted Grange’s summary judgment motion, holding that Jerry Lakes’ $50,000 policy limit was equal to the UIM limit Anita Lakes had in her policy and that it didn’t matter that more than one family member was receiving benefits. The trial court also held Hannah Lakes couldn’t recover under her father’s insurance because that policy excluded coverage for property damage or bodily injury for family members inside the vehicle.

The Court of Appeals reversed, holding that the tortfeasor’s vehicle was underinsured and that Hannah was entitled to recover up to $44,900 in UIM benefits under Anitra’s policy. The justices agreed, although for a different reason. They reaffirmed the decision from a decade ago in Corr v. American Family Insurance, 767 N.E.2d 535 (Ind. 2002).

The Supreme Court agreed with Grange and the trial court that the regime established by the intermediate appellate court may encourage “collusion” among insureds to structure their relationships in order to trigger Corr. But the justices disagreed with the proposed “fix” to that issue, adopting a different standard from another line of precedent.

Justice Frank Sullivan wrote for the court that when there are multiple claimants on these types of cases, courts should examine each claim individually and compare each with the per-person limits of applicable UIM coverage. The per-accident limits have no bearing on whether a vehicle is underinsured, Sullivan wrote, and the per-accident limits come into play only to limit the insurer’s liability.

The trial court judgment is reversed and the case is remanded for further proceedings consistent with this opinion.

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  1. Im very happy for you, getting ready to go down that dirt road myself, and im praying for the same outcome, because it IS sometimes in the childs best interest to have visitation with grandparents. Thanks for sharing, needed to hear some positive posts for once.

  2. Been there 4 months with 1 paycheck what can i do

  3. our hoa has not communicated any thing that takes place in their "executive meetings" not executive session. They make decisions in these meetings, do not have an agenda, do not notify association memebers and do not keep general meetings minutes. They do not communicate info of any kind to the member, except annual meeting, nobody attends or votes because they think the board is self serving. They keep a deposit fee from club house rental for inspection after someone uses it, there is no inspection I know becausee I rented it, they did not disclose to members that board memebers would be keeping this money, I know it is only 10 dollars but still it is not their money, they hire from within the board for paid positions, no advertising and no request for bids from anyone else, I atteended last annual meeting, went into executive session to elect officers in that session the president brought up the motion to give the secretary a raise of course they all agreed they hired her in, then the minutes stated that a diffeerent board member motioned to give this raise. This board is very clickish and has done things anyway they pleased for over 5 years, what recourse to members have to make changes in the boards conduct

  4. Where may I find an attorney working Pro Bono? Many issues with divorce, my Disability, distribution of IRA's, property, money's and pressured into agreement by my attorney. Leaving me far less than 5% of all after 15 years of marriage. No money to appeal, disabled living on disability income. Attorney's decision brought forward to judge, no evidence ever to finalize divorce. Just 2 weeks ago. Please help.

  5. For the record no one could answer the equal protection / substantive due process challenge I issued in the first post below. The lawless and accountable only to power bureaucrats never did either. All who interface with the Indiana law examiners or JLAP be warned.

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