Micheel v. American Family Mutual Insurance Co., No. 20-1800 (8th Cir. 2021)Annotate this Case
After plaintiff was injured in a car accident, she sought underinsured motorist (UIM) benefits from American Family. American Family paid only half of its $100,000 policy limit because of an offset provision in the policy. Plaintiff filed suit alleging that the offset provision did not apply.
The Eighth Circuit reversed the district court's grant of summary judgment in favor of plaintiff, concluding that the terms of the original policy—which included the offset provision—govern here. The court explained that, under Missouri law, by continuing to pay her insurance premiums, plaintiff obtained new policy periods, but the terms of her initial policy—including the offset provision—remained the same. The court rejected plaintiff's claim that American Family created ambiguity in the insurance policy by issuing the summary. Accordingly, American Family is entitled to summary judgment.