In 1997, Plaintiff purchased an automobile insurance policy from Andy Hall and Ben Erickson’s client, a national insurance company. At that time, plaintiff made the decision not to purchase underinsurance coverage. Subsequent to purchasing the policy, plaintiff was involved in an auto accident. After settling with the tortfeasor, plaintiff sought underinsured benefits from Hall and Erickson’s client pursuant to Iowa Code section 516A.1, which generally requires automobile liability insurance carriers to offer underinsured coverage absent specific rejection of such coverage.
After reviewing the applicable policy and corresponding documentation, Hall and Erickson filed for summary judgment on the grounds Iowa law did not control the applicable insurance policy, Illinois law did, and Illinois’ requirements regarding underinsurance coverage offerings were appropriately met. The Iowa District Court for Polk County agreed, holding that plaintiff was not entitled to receive underinsured benefits “that he did not purchase nor can he avail himself of Iowa law merely by moving his residence to Iowa unbeknownst to [the insurance company].”
Iowa District Court for Polk County, Law No. LACL137133