Uninsured/Underinsured Coverage

Rejection Of UIM And PIP Coverages

January 3, 2016 | Mark S. Humphreys

All insurance law lawyers are going to understand how Personal Injury Protection (PIP) and uninsured motorist (UIM) coverage works. For some of the situations that may be confusing, a recent opinion from the Court of Appeals, Houston [14th Dist.] may be helpful to read. It is styled, Donald Cain v. Progressive County Mutual.

This is an appeal from a motion for summary judgment. The main issue is whether the policy at issue falls within the plain meaning of the term “renewal insurance policy” in Texas Insurance Code, Sections 1952.101(c) and 1952.152(b).

Corliss Madison obtained an auto policy from Progressive. At that time, she rejected in writing UIM coverage and PIP coverage. Madison and Larry Bradford were named insureds under the policy. When the policy expired six months later, Madison entered into another insurance policy for the next six-month period. Madison then entered into seven more successive insurance policies every six months over the next four years.

Suing An Insurance Company For Uninsured / Underinsured Coverage

November 21, 2015 | Mark S. Humphreys

Most Mineral Wells insurance lawyers already know the rules governing uninsured / underinsured (UIM) cases. But a reminder is put forth in an Austin Court of Appeals decision. The style of the case is, In re Farmers Texas County Mutual Insurance Company.

The real party in interest is Guy Gimenez. He sued a third party and upon receiving written permission from Farmers, settled the third party case, then brought suit against Farmers for UIM. The UIM case was severed from the extra-contractual claims but the trial court refused to abate the extra-contractual claims. As a result, this mandamus action was filed.

Farmers argued that court abused it’s discretion by refusing to abate the extra-contractual claims which had not accrued and may be rendered moot by the outcome of the contract action.

Uninsured Drivers

November 5, 2015 | Mark S. Humphreys

Insurance attorneys can attest to the number of uninsured drivers in Texas. The Austin American Statesman published an article this week discussing this issue. The title of the article is, “Damage From Uninsured, Unlicensed Drivers Last Well Past Crashes.”

It was just after midnight on Dec. 28 as Nicole DeAngelis was returning from the airport when a car with a black racing stripe suddenly cut across her lane and braked. She tried to stop but slammed into it. As she pulled over, the car sped away.

Luckily for her — less lucky for the young driver with whom she collided — the road he chose for his escape was a dead end, according to court accounts describing the incident. By the time Hector Gutierrez-Chavez returned, Austin police were waiting. It turned out to be DeAngelis’ last piece of good news. Police and court records show that Gutierrez-Chavez, 20, shouldn’t have been driving the 2014 Dodge Challenger at all. He had no valid license — something for which Austin police had cited him five times previously. He was also uninsured.

Uninsured Motorist Rejection

July 2, 2015 | Mark S. Humphreys

Springtown lawyers handling insurance cases would want to know about a ruling in the Florida Supreme Court in May 2015. This ruling was written about in the Claims Journal. The curious thing to try to figure from this case is whether or not the Texas Supreme Court would rule the same way.

The article says the Florida Supreme Court recently considered whether the original policyholder’s signed rejection form, rejecting higher limits of UM coverage, applied to the original insured’s daughter who later became the sole named insured under the policy. In this case the Florida Supreme Court held that the original policyholder’s original rejection of higher UM limits on the policy that named him as an insured, and listed his daughter as a driver, was not binding on the daughter, individually, nor in her capacity as personal representative of her father’s estate. The facts indicated that the original insured, Richard Chase, insured his vehicle in 2001 with a policy through Horace Mann, providing liability limits of $100,000/$300,000. The vehicle insured under the policy was a 1992 Chevrolet Geo. Richard Chase who was the only named insured at that time, and the titled owner of the Geo, signed a form in which he selected reduced UM limits of $25,000/$50,000. Allison Chase, his daughter, was listed as a driver on the policy but was not a named insured on the policy and, therefore, had no right to select UM limits.

In 2004, Horace Mann removed Richard Chase as the sole named insured on the policy and made his daughter, Allison Chase, the sole named insured. Horace Mann also changed the insured vehicle to a 1997 Ford Escort that had been acquired by Allison three days earlier which was titled in her own name. Horace Mann then issued a new policy with Richard Chase as the sole named insured, insuring a 2004 Jeep that was owned by Richard. When the new policy was sold to Richard Chase he was presented with another written rejection form to sign. Allison Chase, who had never previously had the opportunity to select lower UM limits, was not provided the opportunity to reject the coverage or select lower limits when she was designated as the named insured on the policy issued in 2001.

Collecting Uninsured Motorist Coverage

June 18, 2015 | Mark S. Humphreys

Springtown insurance lawyers need to understand how to help a client recover uninsured motorist benefits (UM). In doing so, they would need to be aware of a 2015, Houston Court of Appeals [1st Dist.] opinion. The style of the case is, Oliver Vans, Jr. Mickey Dinh, Santos Reyna, and Lo Dinh v. Infinity County Mutual Insurance Company and Sandra Hightower.

Vans, Reyna, and Dinh (appellants) were traveling in a 1996 Camry, owned by Dinh, when it struck another vehicle. All three were injured. Vans took photos of the other vehicles license plant which was id’ed as a 1999 Olds owned by Orozco.

Appellants sued Orozco. Orozco filed a handwritten answer stating that she was neither the driver or owner of the Olds and that she had sold the vehicle to Zamora. She also sent a copy of the Bill of Sale that was signed by her and Zamora. She also sent a letter stating she did not have insurance on the vehicle and that Orozco did not have insurance either. Thus, appellants made a UM claim against Infinity.

Underinsured Coverage And Pain And Suffering

March 8, 2015 | Mark S. Humphreys

Mansfield lawyers who handle underinsured motorist claims will make claims for medical bills, lost wages, and paid and suffering. So,what about the paid and suffering aspect of a claim – is it compensable? The general rule is Yes. However, a Houston Court of Appeals case styled Calderon v. Home State County Mutual Insurance Company is worth reading with regards to pain and suffering as an element of damages.

After he was involved in a car accident, Cesar Calderon sued Home State to recover under his underinsured motorist policy. A jury awarded Calderon some of the medical expenses that he claimed to have incurred following the accident, but it denied his request for past and future pain and mental anguish. Calderon contested the jury award of zero damages for pain and mental anguish as against the great weight and preponderance of the credible evidence. Finding no error, this court affirmed the jury finding.

Christine Verhardt was driving when took her eyes off the road for four to five seconds, and rear-ended Calderon, who had stopped due to traffic congestion. Immediately after the accident, Calderon was dizzy and felt pain in his shoulder, neck, and legs. About 20 minutes later, he felt pain in his back, and had trouble standing. An ambulance transported him to the emergency room. The EMS report noted lower back pain with no abnormalities, and upper right leg pain. The damage to Calderon’s car cost $3,610.92 to repair.

Uninsured Motorist Coverage And Workers Compensation

December 7, 2014 | Mark S. Humphreys

Grand Prairie insurance attorneys will run into situations where a person who is covered by workers compensation insurance is injured in a vehicle where the at fault driver does not have liability insurance for themselves but the injured employee does have uninsured motorist coverage. If the person covered by workers compensation accepts workers compensation benefits does their uninsured motorist coverage also have to compensate them for their injuries?

This was answered in a 1973, Houston Court of Appeals [1st Dist.] case styled Hamaker v. American States Insurance Company of Texas. Here is some of the information from that case.

This is an appeal from a summary judgment for the defendant granted in a suit for damages brought under the uninsured motorist provision of an insurance policy. The crucial question concerns the validity of a provision in the policy permitting the insurer to reduce the amount payable under the terms of the policy by the amount the insured has received in workmen’s compensation payments.

Uninsured Motorist And Vehicles Available For Regular Use

November 2, 2014 | Mark S. Humphreys

Fort Worth insurance lawyers need to know how Texas insurance law applies when presented with a certain set of facts. As it relates to Uninsured Motorist coverage, a San Antonio Court of Appeals case is important to know. It is a 1990, opinion styled, Briones v. State Farm. Here is the relevant information from the case.

Briones appealed a take nothing summary judgment granted in his suit against State Farm seeking recovery on his family automobile insurance policy under the uninsured motorists clause, for bodily injuries suffered in a one vehicle automobile accident. In one point of error Briones contended that:

The Trial Court erred in granting State Farm’s Motion for Summary Judgment because there is a genuine issue as to material facts regarding the one remaining issue to be litigated by the parties, namely whether the tractor-trailer in which Briones was a passenger at the time of his bodily injuries was furnished or available for his regular use.

Uninsured Motorist Coverage And Punitive Damages

October 23, 2014 | Mark S. Humphreys

Weatherford insurance lawyers need to be able to discuss the coverages available to a client, depending on the circumstances they are dealing with as described by the client. When it comes to uninsured motorist coverage, the Houston Court of Appeals [14th Dist.] issued an opinion in 1997, that is still good law. The style of the case is, Milligan v. State Farm Mutual Automobile Insurance. Here is what the case tells us.

The facts in this case are not in dispute. Milligan was injured in an accident caused by an uninsured drunk driver. The parties agree that the driver’s conduct constituted gross negligence. At the time of the accident, Milligan was insured by State Farm under a policy providing uninsured motorist coverage. State Farm’s policy provides in relevant part as follows:

We will pay damages which a covered person is legally entitled to recover from the owner or operator of an uninsured motor vehicle because of bodily injury sustained by a covered person, or property damage caused by an accident.

Texas And Uninsured Drivers

September 20, 2014 | Mark S. Humphreys

Texas insurance lawyers see lots of uninsured drivers. The Insurance Journal published an article addressing this issue. The title of the article is, “Number Of Uninsured Drivers On Texas Roads Drops.” Here is what the article tells us.

The number of uninsured drivers in Texas has dropped more than 38 percent from a year ago, state statistics show, and officials attribute the decline to a program focused on getting those drivers either insured or off the road and a clean-up of the database of the state’s licensed drivers.

Statistics compiled in June indicate 13 percent of motorists, or about 2.6 million Texans, are driving without minimum insurance coverage, which is a violation of state law. One year ago, the state reported that about 22 percent of all drivers, or 4.2 million people, had no insurance.