Nationwide Mutual Insurance Co. v. Kelly

Summary

The Iowa Supreme Court affirmed summary judgment for Daniel Kelly in a dispute over the interpretation of an "other insurance" clause in Nationwide's underinsured motorist policy. The court held that the highest applicable limit was the $100,000 stated limit in the primary insurer's Oregon policy, rather than the $50,000 amount payable after applying Oregon law. Kelly was therefore entitled to recover the $50,000 limit under his Nationwide UIM coverage.

Holdings

1. The highest applicable limit was Allstate's $100,000 stated UIM policy limit, not the $50,000 amount payable after applying Oregon's statutory reduction.
2. Nationwide was obligated to provide Kelly UIM coverage up to the $50,000 limit of his Nationwide policy.

Questions Presented

1. Whether the highest applicable limit under Nationwide's other-insurance clause was the $100,000 stated limit of Allstate's UIM policy or the $50,000 amount payable after Oregon's statutory reduction.
2. Whether Nationwide was obligated to provide Kelly with up to its $50,000 UIM policy limit.

Disposition

affirmed