Hillabrand v. American Family Mutual Insurance Co., 271 Neb. 585

Summary

The Nebraska Supreme Court held that an underinsured motorist policy issued to a corporation did not cover the corporation's owner, officer, director, and employee for injuries sustained while driving his personally owned vehicle on company business. The court concluded that the policy's use of the term "you" for the corporate named insured was unambiguous and that the relevant exclusion did not violate Nebraska law. The court affirmed summary judgment for American Family Mutual Insurance Company.

Holdings

1. An automobile insurance policy issued to a corporation is not rendered ambiguous merely because it refers to the corporation as 'you' when the policy clearly defines 'you' as the named insured and clearly identifies the corporation as the named insured.
2. The UIM coverage in American Family's policies issued to Parker Heating did not cover Hillabrand's injuries sustained while he was driving a personally owned vehicle, even though he was acting within the course and scope of corporate employment.
3. The challenge to the policy exclusion under Neb. Rev. Stat. § 44-6413 was irrelevant because Hillabrand was not a named insured under the corporate policy and was not occupying a vehicle owned by the corporate named insured or a relative of that named insured.

Questions Presented

1. Whether a commercial automobile insurance policy issued to a corporation is ambiguous because it defines an insured person as 'you or a relative' while defining 'you' as the named insured and the named insured is a corporation.
2. Whether the policy's UIM provisions covered Hillabrand, an owner, officer, director, and employee of the corporate named insured, while he was injured in the course of corporate business driving a personally owned vehicle.
3. Whether the policy's exclusion for injury sustained while occupying a vehicle not insured under the policy was more restrictive than Neb. Rev. Stat. § 44-6413 and therefore void.

Disposition

affirmed