Julie Probus-Schad v. Auto-Owners Insurance Company

Summary

The United States District Court for the Eastern District of Missouri grants Auto-Owners Insurance Company’s motion for summary judgment in a dispute over underinsured motorist coverage. The court holds that the policy unambiguously requires the at-fault driver’s liability limits to be less than the insured’s $100,000 UIM limit, and therefore the driver’s equal $100,000 limit did not trigger coverage. The court also rejects the plaintiff’s vexatious-refusal claim and enters judgment for Auto-Owners.

Holdings

1. The policy unambiguously defined an underinsured automobile as one with liability limits less than the UIM limits stated in the declarations. Because the at-fault driver's liability limit was exactly $100,000, the vehicle did not qualify as an underinsured automobile and UIM coverage was not triggered.
2. The policy was not ambiguous merely because its declarations page stated a $100,000 UIM limit and its definition and limitation provisions restricted when and how that coverage could be paid.
3. Auto-Owners was entitled to summary judgment because the policy did not provide UIM coverage under the stipulated facts, and the absence of coverage defeated both the UIM coverage claim and the vexatious-refusal claim.

Questions Presented

1. Whether the Auto-Owners policy's definition of an underinsured automobile was ambiguous or otherwise provided UIM coverage when the at-fault driver's bodily-injury liability limit equaled the policy's $100,000 UIM limit.
2. Whether the policy's declarations page and set-off provisions created an ambiguity by making it impossible for the insured to recover the full stated UIM limit.
3. Whether Auto-Owners was entitled to summary judgment on the UIM coverage and vexatious-refusal claims.

Disposition

other