Katelin Newman v. Cornerstone National Insurance Company Dba Freedom National Insurance Services
344 P.3d 337
Ariz.2015Background
- Newman was injured in a motor vehicle collision; at-fault driver’s coverage was insufficient for her damages.
- Newman sought underinsured motorist (UIM) coverage from Cornerstone, which denied the claim after she waived UIM.
- Cornerstone had offered UIM on an Arizona Department of Insurance (ADOI)–approved form that Newman declined.
- Newman filed suit seeking a declaration that the waiver form was void and that she was entitled to UIM coverage.
- She moved for partial summary judgment arguing the offer was deficient for not including a premium quote; Cornerstone cross-moved for summary judgment.
- Trial court denied Newman’s motion and granted Cornerstone’s; the court of appeals affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does § 20-259.01(B) require a premium quote in a UIM offer? | Newman argues the offer must include price information. | Cornerstone argues the statute does not require a premium quote if the offer makes coverage available. | No premium quote required; offer satisfied statute. |
| Is an ADOI-approved UIM form sufficient to satisfy § 20-259.01(B)? | Newman contends the form’s terms are not fully defined by the statute and may be inadequate. | Cornerstone contends ADOI-approved forms satisfy the statute. | ADOI-approved form satisfies the statute. |
Key Cases Cited
- Ballesteros v. American Standard Ins. Co. of Wisconsin, 226 Ariz. 345 (Arizona 2011) (requires only bringing availability to insured’s attention; no extra terms)
- Tallent v. Nat'l Gen. Ins. Co., 185 Ariz. 266 (Arizona 1996) (no requirement to translate or explain UIM terms in the offer)