Country Preferred Insurance Co. v. Lee, No. 18-2096 (8th Cir. 2019)Annotate this Case
The parties agreed that the anti-stacking provision barred the insureds from recovering any money from Country Preferred for a car accident. The insureds contend that as a result, Country Preferred committed fraud and was unjustly enriched by collecting three separate premiums for underinsured motorist (UIM) coverage, when the anti-stacking provision rendered the UIM coverage in the insureds' second and third policies worthless or "illusory" under Missouri courts.
The Eighth Circuit affirmed the district court's dismissal of the fraudulent misrepresentation and unjust enrichment counterclaims, holding that the anti-stacking provisions did not render UIM coverage in multiple policies illusory because the premium paid for coverage under each policy corresponded with an increase in coverage. In this case, payment for UIM coverage under the insureds' second and third insurance policies buys coverage for non-named, non-family passengers and drivers of the insureds' second and third vehicles.