Phillips v. St. Paul Fire & Marine Insurance Co., 289 Kan. 521

Summary

The Kansas Supreme Court held that a valid prior written rejection of higher underinsured motorist coverage limits remained effective for any subsequent policy issued by the same insurer to the same insured under K.S.A. 40-284(c). Because the Unified Government had previously rejected the higher limit, the 1999 rejection controlled its 2003 policy with St. Paul despite an intervening lapse in coverage and an incomplete 2003 rejection form. The court reversed the district court, vacated the attorney fees award, and affirmed the Court of Appeals.

Holdings

1. Under K.S.A. 40-284(c), a valid prior written rejection of higher UIM coverage remains effective for any subsequent policy issued by the same insurer to the same insured unless the insured revokes the earlier rejection or requests higher coverage in writing. The subsequent policy need not be a renewal policy, and an intervening lapse in coverage or business relationship does not automatically revoke the rejection.
2. Phillips was not entitled to the attorney-fee award because the merits ruling required summary judgment in favor of St. Paul; the attorney-fee issue was therefore moot and the award was vacated.
3. The reasonableness of the attorney-fee award need not be decided because the merits ruling rendered the attorney-fee issues moot; the award was vacated.

Questions Presented

1. Whether the Unified Government's valid 1999 written rejection of the higher UIM coverage limit controlled the UIM limit in its 2003 policy with St. Paul despite the intervening lapse in coverage and the defective 2003 rejection form.
2. Whether St. Paul denied Phillips's UIM claim without just cause or excuse and was therefore liable for attorney fees.
3. Whether the attorney fees awarded by the district court were reasonable.

Disposition

reversed