Insurance Claim – Coverage

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WI Court of Appeals – District IV

Case Name: Elliot Brey, et al., v. State Farm Mutual Automobile Insurance Company

Case No.: 2019AP1320

Officials: Fitzpatrick, P.J., Blanchard, and Kloppenburg, JJ.

Focus: Insurance Claim – Coverage

Elliot Brey brought suit in the Monroe County Circuit Court against State Farm Mutual Automobile Insurance Company seeking to recover underinsured motorist benefits based on the death of Elliot’s father, Ryan Johnson, who died from injuries sustained in a motor vehicle accident. Elliot is an insured under the State Farm policy, but Johnson was not. Elliot and State Farm agree that a provision of the State Farm policy requires that an insured suffer “bodily injury” for there to be UIM coverage, and they also agree that while Johnson suffered “bodily injury” as defined in the State Farm policy, Elliot did not. As a result, Elliot and State Farm also agree that the State Farm UIM insured requirement bars UIM coverage for Elliot’s claims. Nonetheless, Elliot argues that his UIM claim against State Farm does not fail because, pursuant to WIS. STAT. § 632.32(1) and (2)(d) (2017-18), the UIM insured requirement in the State Farm policy is void and unenforceable.

The circuit court disagreed with Elliot’s argument and granted summary judgment to State Farm dismissing Elliot’s UIM claim. We conclude that the UIM insured requirement which bars Elliot’s UIM claim is void and unenforceable pursuant to the operation of WIS. STAT. § 632.32(1) and (2)(d). Those statutory subparts do not allow for a UIM policy provision which demands that bodily injury must be sustained by an insured for there to be UIM coverage. Accordingly, we reverse the order of summary judgment and remand this matter to the circuit court with directions to grant summary judgment in favor of Elliot on the question of UIM coverage.

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Derek A Hawkins is trademark corporate counsel for Harley-Davidson. Hawkins oversees the prosecution and maintenance of the Harley-Davidson’s international trademark portfolio in emerging markets.