Stanton v. Public Employees Mutual Insurance

— The underlying question is whether an automobile insurance policy issued by Public Employees Mutual Insurance Company (PEMCO) to the Stantons provided underinsurance coverage. The trial court answered in the negative and the Stantons appeal. We reverse.

This issue is presented on stipulated facts. The Stantons owned two cars, a 1976 Honda and a newly acquired 1980 Toyota. The Honda was insured with Consumers Insurance Company. On August 26, 1980, they applied for a policy with PEMCO's agent to insure both vehicles. The Stantons were informed about and agreed to purchase uninsured motorist…