Dircks v. Travelers Indemnity Co. of AmericaAnnotate this Case
The terms of Utah Code 31A-22-305.3 requires that all vehicles covered under the liability provisions of an automobile insurance policy must also be covered under the underinsured motorist provisions of that policy, and with equal coverage limits, unless a named insured waives the coverage by signing an acknowledgment form meeting certain statutory requirements.
When Derek Dircks and Michael Riley suffered injuries in a car accident they were in Riley’s personal vehicle on an assignment for their employer, Mid-State Consultants, Inc. Dircks and his wife (together, Plaintiffs) sought underinsured motorist benefits under Mid-State’s commercial insurance policy with Travelers Indemnity Company of America. The policy included liability coverage for persons driving in either a Mid-State fleet vehicle or a vehicle owned by a Mid-State employee when used for Mid-State Business. The policy also included underinsured motorist coverage but purported to limit this coverage to persons driving in Mid-State fleet vehicles. Travelers denied Plaintiffs’ claim, and Plaintiffs filed suit. The federal district court certified to the Supreme Court the question of whether state law requires that all vehicles for which Mid-State had purchased liability coverage be covered to the same extent under Mid-State’s underinsured motorist coverage. The Supreme Court answered the certified question in the affirmative.