Blood v. Old Guard Insurance

OPINION

Justice BALDWIN.

In this automobile insurance case, we determine how an insured’s decision to reduce the limits of his or her liability coverage affects a previous election of uninsured/underinsured motorist (“UM/UIM”) coverage at a level less than the liability limits established prior to the reduction. For reasons explained below, we reverse the decision of the Superior Court.

When Michael and Sharon Blood, Appellee’s parents, applied to Appellant Old Guard Insurance Company (“Old Guard”) for automobile insurance in 1986, they requested $500,000 in liability coverage. While they were…