Split opinion: Disclosure of insurance policy limit is reversible error

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Ruling on an issue of first impression, a divided panel of the Indiana Court of Appeals on Friday rejected a jury’s award of $250,000 to the widow of a motorcyclist injured in a crash. The majority remanded for a new trial, holding that disclosure of uninsured motorist policy limits was irrelevant and prejudiced the jury.

The majority’s holding in State Farm Mutual Automobile Insurance Company v. Kimberly S. Earl and The Estate of Jerry Earl, 36A05-1212-CT-635, would align Indiana with other states such as Florida and Nebraska in which courts have ruled that disclosure of policy limits may be reversible error.

A Jackson Circuit jury awarded Jerry Earl $250,000 under his uninsured motorist coverage after he was run off the road by a tractor-trailer on Interstate 65. Both parties stipulated Earl was not at fault in the 2008 crash in which the trucker, apparently unaware of the crash, did not stop and was never identified. Earl since died from an unrelated cause.

“State Farm argues that the trial court erred when it allowed into evidence at a jury trial the $250,000 bodily injury limit provision contained in the Earls’ (uninsured motorist) insurance policy. State Farm contends that evidence of the bodily injury limit was both irrelevant and prejudicial. Determining that evidence of the bodily injury limit was in fact both irrelevant and prejudicial, we reverse and remand this cause to the trial court for further proceedings consistent with this opinion,” Judge John Baker wrote for the majority, joined by Chief Judge Nancy Vaidik.

Judge Patricia Riley dissented.

"State Farm asserts, and the majority agrees, that the amount of the verdict — which was exactly the maximum under the UM coverage — suggests that the jury was influenced by the evidence of the coverage limit,” Riley wrote. “However, the majority disregards the substantial amount of evidence reflecting Jerry’s extreme pain in the weeks after the wreck and the physical pain, mental suffering, and limitations he continued to suffer because of his injuries until his death.

"Prejudicial error is not established merely because the jury awarded the UM policy limit; rather, the more appropriate inference is that the jury followed the trial court’s instructions and, in light of the overwhelming evidence, arrived at the policy limit. I would affirm the trial court."    



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  1. This is ridiculous. Most JDs not practicing law don't know squat to justify calling themselves a lawyer. Maybe they should try visiting the inside of a courtroom before they go around calling themselves lawyers. This kind of promotional BS just increases the volume of people with JDs that are underqualified thereby dragging all the rest of us down likewise.

  2. I think it is safe to say that those Hoosier's with the most confidence in the Indiana judicial system are those Hoosier's who have never had the displeasure of dealing with the Hoosier court system.

  3. I have an open CHINS case I failed a urine screen I have since got clean completed IOP classes now in after care passed home inspection my x sister in law has my children I still don't even have unsupervised when I have been clean for over 4 months my x sister wants to keep the lids for good n has my case working with her I just discovered n have proof that at one of my hearing dcs case worker stated in court to the judge that a screen was dirty which caused me not to have unsupervised this was at the beginning two weeks after my initial screen I thought the weed could have still been in my system was upset because they were suppose to check levels n see if it was going down since this was only a few weeks after initial instead they said dirty I recently requested all of my screens from redwood because I take prescriptions that will show up n I was having my doctor look at levels to verify that matched what I was prescripted because dcs case worker accused me of abuseing when I got my screens I found out that screen I took that dcs case worker stated in court to judge that caused me to not get granted unsupervised was actually negative what can I do about this this is a serious issue saying a parent failed a screen in court to judge when they didn't please advise

  4. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

  5. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.