Court of Appeals Summary Decision of the Month:
Insurance. Underinsured motorist coverage and named insured – person vs. legal entity (LLC)
Metzger v. Auto-Owners Insurance Company and Owners Insurance Company
Appellants argued that Diana Metzger was entitled to underinsured motorist (UIM) coverage under a commercial automobile insurance policy issued to Metzger’s Country Store, LLC (Metzger’s), after she was struck by a vehicle while out walking. Appellants were part-owners and members of the LLC. The appellee insurance companies argued that Diana was not covered under the terms of their UIM coverage. The Court of Appeals agreed with the insurers and affirmed. In particular, the Court rejected appellants’ argument that Diana should be considered a first-class insured, as a member of the LLC, for purposes of UIM coverage. Distinguishing the facts of this case from those of several others, the Court noted that Metzger’s itself was not given first-class UIM coverage under the policy. Instead, the policy specifically required that the named insured be an individual before first-class coverage applied – which was not the case here. Appellants cited to no case or statutory law that requires all UIM policies to provide first-class coverage under any and all circumstances. Consequently, because Metzger’s was not given first-class coverage, nor did the UIM coverage mention the members of the LLC, Diana was not entitled to UIM benefits. The Court also rejected appellants’ argument that the policy at issue was ambiguous.
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Here are individual summaries prepared by the AOC organized by legal topics this months PUBLISHED decisions only.
For a list of all archived monthly summaries, please click here for those at the AOC web site and click here for those posted here on this blog.
Please note some of these published decisions may have pending motions for discretionary review so you are cautioned to confirm finality of disposition by going to the AOC’s web site.
