Tri-State Insurance Co. of Minnesota v. Gooyer

SCHULTZ, Justice.

The determinative issue in this appeal is whether an underinsured motorist provision which prevents the “stacking or pyramiding” of coverages is a valid limitation under Iowa Code section 516A.2. The insurance policy in question provided, under-insurance motorist coverage on each of the insured’s two vehicles. After the insured was killed in an automobile accident, the insurer brought a declaratory judgment action seeking to limit its liability to the face amount of a single coverage under its policy. The district court construed section 516A.2 to permit the insurer to…