Iverson v. State FarmAnnotate this Case
Carter and Glenada Iverson were killed in a head-on collision with an underinsured motorist while driving a vehicle covered by their policy with State Farm. The personal representative of the Iversons' estate requested that State Farm provide underinsured motorist (UIM) coverage in an amount equal to the liability policy limits of $100,000. State Farm offered $20,000, the limit under the Iversons' policy for the UIM claims. Iverson sued State Farm in district court. The Supreme Court granted certification to answer whether an insurer may provide lower limits for underinsured motorist coverage than for liability coverage under Utah law. The Court concluded that (1) such coverage may comply with Utah law if the insurer follows the consumer notification requirements contained in the Utah Code; (2) because notification requirements differ depending on when the insured's policy was issued, a court must first determine whether a new policy existed on or after January 1, 2001; and (3) a new policy exists on or after this date when the insurer and the insured enter into a new contractual relationship or if changes are made to the terms of an existing insurance contract that materially alter the levels of risk contained in the contract.