Meridian Security Insurance Co. v. Schmitt-Selken, No. 19-2415 (8th Cir. 2020)Annotate this Case
The Eighth Circuit affirmed the district court's grant of summary judgment in favor of Meridian in an action brought by Meridian seeking a declaration that it has no obligation to provide underinsured motorist (UIM) benefits to either Lois Schmitt-Selken or the Estate of Donald Selken for injuries or damages arising out of a motor vehicle accident occurring while Lois was a passenger in husband Donald Selken's car.
The court held that, under the unambiguous policy language, the "owned-but-not-insured" exclusion in the Meridian policy bars Lois's claim for UIM benefits for the accident occurring while she was a passenger in her husband's vehicle. In this case, Lois's argument that the definition of "you" requires joint ownership of a vehicle before the exclusion applies is neither a reasonable interpretation of the policy language, nor consistent with the purpose of an "owned-but-not-insured" exclusion.