Earlier this year, the Idaho Supreme Court upheld a ruling in Lanningham v. Farm Bureau Mutual Insurance Company of Idaho, that clarified underinsured motorist (UIM) coverage limitations. The court affirmed that non-resident adult children do not qualify as “insured” under their parent’s UIM policy and that an insured’s estate cannot claim benefits for wrongful death. The decision maintains the court’s previous stance in Eisenman and narrowly interprets Idaho Code section 41-2502.
INSIGHTS FOR GF CLIENTS
This ruling provides a strong legal foundation for managing UIM-related claims.
- The ruling reinforces the importance of clear policy definitions to provide important limitations on coverage. Specifically, the fact that a person may be an heir under a wrongful death statute does not make that person an “insured” under the language of the policy.
- The ruling confirms prior precedent allowing UIM claim denials for non-resident family members who do not meet the definition of an “insured.”
- The ruling strengthens insurers’ position that excluding non-resident family members from UIM coverage does not violate public policy.
Please contact a Gjording Fouser lawyer at 208.336.9777 if you would like any additional information about this topic or any other issues facing your company.