Federated Mut. Ins. Co., Inc. v. Vaughn

These appeals involve the construction of an automobile insurance policy. They present the question whether the sole named insured was entitled to reject uninsured-motorist coverage with respect to some, but not all, additional insureds. We hold that it was.

I. Facts and procedural history

Melvin Arthur Vaughn was an employee of Farmers Tractor Company, Inc. ("Farmers"). On April 25, 2002, Vaughn was driving a vehicle owned by Farmers and covered by an automobile insurance policy issued by Federated Mutual Insurance Company, Inc., when he collided with a vehicle driven by Ellen Chapman. Vaughn,…