2026 N.H. 28
N.H.2026Background
- State Farm sold Katherine Royce a $1 million umbrella policy in 2000, and she signed an application rejecting uninsured/underinsured motorist coverage. 1
- State Farm renewed the policy in 2001, and Katherine then increased her umbrella liability limit to $5 million without signing a new UIM rejection. 2
- After the plaintiff was injured in Katherine's insured vehicle in 2021, State Farm denied UIM coverage under the umbrella policy. 3
- The plaintiff sought declaratory judgment for $5 million in UIM coverage, but the superior court granted summary judgment to State Farm. 4
- The supreme court held that the 1991 version of RSA 264:15, I governed and required UIM coverage for the $4 million increase absent a waiver. 5
- The court also held that Katherine's original rejection remained effective for the initial $1 million umbrella coverage and its renewals. 6
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did Katherine's $4 million umbrella increase trigger UIM coverage? 7 | The increase was a new purchase requiring a fresh waiver. | Only the original policy purchase mattered; prior rejection controlled. | Yes; the increase was a purchase triggering automatic UIM coverage absent waiver. 8 |
| Did renewals of the original $1 million coverage require a new UIM rejection? 9 | Each renewal was a new purchase needing renewed waiver. | Renewals were merely administrative and preserved the original waiver. | No; the original waiver remained effective for renewals of the $1 million coverage. 10 |
Key Cases Cited
- O'Malley-Joyce v. Travelers Home & Marine Ins. Co., 175 N.H. 245 (N.H. 2022) (summary judgment standard 11)
- Boyle v. City of Portsmouth, 172 N.H. 781 (N.H. 2020) (cross-motions for summary judgment reviewed in light most favorable to each nonmovant 12)
- CC 145 Main v. Union Mut. Fire Ins. Co., 176 N.H. 97 (N.H. 2023) (insurer bears burden in declaratory judgment coverage action 13)
- Appeal of Town of Salem, 168 N.H. 572 (N.H. 2016) (statutory interpretation reviewed de novo 14)
- Boucher v. Town of Moultonborough, 176 N.H. 271 (N.H. 2023) (plain meaning and no judicial rewriting of statutes 15)
- Rizzo v. Allstate Ins. Co., 170 N.H. 708 (N.H. 2018) (UIM statute aims to place insureds in same position as if tortfeasor had comparable liability insurance 16)
- Swain v. Employers Mut. Cas. Co., 150 N.H. 574 (N.H. 2004) (elective coverage provision seeks parity between liability and UIM protection 17)
- O'Donnell v. Allstate Indem. Co., 173 N.H. 295 (N.H. 2020) (amended statute expressly keeps UIM rejection effective on amendment or renewal 18)
- United Services Automobile Association v. Wilkinson, 132 N.H. 439 (N.H. 1989) (earlier version of statute excluded umbrella-type policies until legislative amendment 19)
- Santos v. Metro. Prop. & Cas. Ins. Co., 171 N.H. 682 (N.H. 2019) (legislature responded to Wilkinson by amending RSA 264:15 to include umbrella policies 20)
- Rivera v. Liberty Mut. Fire Ins. Co., 163 N.H. 603 (N.H. 2012) (UIM statute construed liberally to compensate victims of inadequately insured motorists 21)