Academic journal article Journal of Risk and Insurance

Underinsured Coverage Extended to Insured's Vehicle

Academic journal article Journal of Risk and Insurance

Underinsured Coverage Extended to Insured's Vehicle

Article excerpt

The Ohio Supreme Court has held that underinsured coverage must be extended to the insured vehicle involved in a one car accident. Alexander's policy provided the normal $50,0001/$100,000 coverage for bodily injury and the state-mandated uninsured and underinsured coverage. An exclusion in the underinsured portion of the policy, however, denied coverage to the insured's vehicle.

An unusual set of circumstances triggered the exclusion in the State Farm underinsured motorist coverage. While the policy was effective, Cosey drove the insured van with Alexander as a passenger. Cosey lost control of the van and was killed. Alexander was injured. Cosey carried auto insurance with Atlantic, and it paid Alexander the full amount available for liability coverage, $12,500. Because Cosey's liability coverage was less than Alexander's, Alexander sought additional compensation from State Farm on the underinsured clause. State Farm refused coverage based on the exclusion. The supreme court, however, ruled that the exclusion violated state law and was not enforceable.

The policy language, if effective, would exclude coverage for the insured's own vehicle involved in a one car accident. …

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