State Farm Mutual Automobile Insurance Co. v. Chambers

SHRUM, Judge.

State Farm brought this declaratory judgment action against its insured, Teresa Ann Rice; Laura Chambers, a minor who was injured when struck by an automobile operated by the insured; and Elizabeth Abel, Laura’s mother.

The amount of bodily injury liability coverage under the policy issued to Rice was $25,000 for each person and $50,000 for each accident. State Farm offered to pay $25,000 to settle Laura’s bodily injury claim and Elizabeth’s derivative claim against Rice arising out of the accident. Laura and Elizabeth refused that offer, contending the applicable policy provision…