Ballesteros v. American Standard Insurance
248 P.3d 193
Ariz.2011Background
- Arizona law requires UM/UIM offers by written notice using a DOI-approved form; no statutory Spanish-translation requirement.
- Ballesteros, a Spanish speaker, completed an application with Spanish assistance and received an English DOI-approved UM/UIM form to elect or decline coverage.
- Ballesteros signed declining UM/UIM coverage on the English form.
- Ballesteros later claimed UM coverage should be included by operation of law after an uninsured driver's relative died and a claim was denied.
- Trial court granted partial summary judgment for Ballesteros; court of appeals affirmed in part but held issues remained about whether the DOI form satisfied § 20-259.01.
- Arizona Supreme Court granted review to decide Spanish-language requirement and the sufficiency of a DOI-approved form for compliance.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does § 20-259.01 require a Spanish form? | Ballesteros argues Spanish form is required. | American Standard argues no translation required. | No Spanish form required; offer evaluated on objective understanding. |
| Does using a DOI-approved form satisfy § 20-259.01? | Ballesteros contends the form fails to meaningfully offer coverage. | American Standard asserts DOI-approved form satisfies the statute. | Using a DOI-approved form satisfies the statute. |
| Should comprehension/translation affect whether an offer is made? | Ballesteros contends comprehension matters for valid offer. | Defendant argues comprehension is not required by statute. | Comprehension/translation not required; objective offer standard applies. |
Key Cases Cited
- Ins. Co. of N. Am. v. Superior Court (Villagrana), 166 Ariz. 82 (Ariz. 1990) (remedies for failure to offer UM coverage; operation of law concept)
- Giley v. Liberty Mut. Fire Ins. Co., 168 Ariz. 306 (Ariz. App. 1991) (make available requires reasonably bringing attention to coverage; misleading forms)
- Tallent v. Nat'l Gen. Ins. Co., 185 Ariz. 266 (Ariz. 1996) (offer standard governed by contract principles; no need for explanation of coverage)
- McCloe v. Utah Home Fire Ins. Co., 121 Ariz. 402 (Ariz. App. 1978) (make available did not require affirmative knowledge of option)
- Lopez v. Charles Schwab Co., 118 Cal.App.4th 1224 (Cal. App. 2004) (test for an offer: reasonable belief assent is invited)