Raymond Anthony Monday v. Canal Insurance Company

Summary

The Supreme Court of Arkansas held that Ark. Code Ann. § 23-89-209 requires insurers to offer underinsured-motorist coverage with private passenger automobile liability policies, but not with commercial automobile liability policies. Because Canal issued Alygar Trucking a commercial truck liability policy, the insurer was not required to offer underinsured-motorist coverage. The court affirmed summary judgment for Canal.

Holdings

1. Ark. Code Ann. § 23-89-209 does not require an insurer to offer underinsured-motorist coverage when issuing a commercial automobile liability policy.
2. The application of section 23-89-209 depends on the type of insurance policy issued, not on whether the insured vehicle could also be used as a private passenger vehicle.
3. Section 23-89-209(b) requires underinsured-motorist coverage to be offered in coordination with uninsured-motorist coverage only when the policy is one for which underinsured-motorist coverage must otherwise be offered.

Questions Presented

1. Whether Ark. Code Ann. § 23-89-209 requires an insurer to offer underinsured-motorist coverage when issuing a commercial automobile liability policy.
2. Whether the statute's reference to "private passenger automobile liability insurance" turns on the type of vehicle insured or the type of insurance policy issued.
3. Whether Ark. Code Ann. § 23-89-209(b) requires an insurer to offer underinsured-motorist coverage whenever the insured elects uninsured-motorist coverage.

Disposition

affirmed