Reid v. Mississippi Farm Bureau Casualty Insurance Co.
63 So. 3d 1238
| Miss. Ct. App. | 2010Background
- Reids carried auto policy with Farm Bureau; UM coverage on two vehicles only, $50,000 and $25,000.
- Three other vehicles had no UM coverage and no written waiver; law imputes $25,000 UM on each of those three.
- William Reid died in a crash caused by an underinsured negligent driver with $25,000 liability.
- Farm Bureau tendered $125,000: $75,000 UM actually carried plus $25,000 for each waived vehicle, offset by the driver’s $25,000 payment.
- Susan sued claiming an additional $75,000 in UM coverage was owed due to missing explanation by the agent.
- Circuit court granted summary judgment for Farm Bureau; policy interpretation and duty of the agent were at issue on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether additional UM coverage is owed for three vehicles with no waiver | Reid seeks $75,000 more UM due to gap created by lack of waiver. | UM minimums apply; no waiver means $25,000 per vehicle by law, no extra entitlement. | No; only minimum UM applies, no extra liability for the three vehicles. |
| Whether the agent owed a duty to explain UM coverage beyond the statutory minimum | Agent failed to explain costs/benefits, causing inadequate coverage. | Mississippi law does not require explanation of UM beyond minimum. | No; agent owed no duty to explain UM beyond the statutory minimum. |
Key Cases Cited
- Owens v. Miss. Farm Bureau Cas. Ins. Co., 910 So.2d 1065 (Miss. 2005) (role of agent explanation regarding UM coverage limited; waiver issue separate)
- PPG Architectural Finishes, Inc. v. Lowery, 909 So.2d 47 (Miss. 2005) (summary judgment standard de novo review)