State Farm Mutual Automobile Insurance Company v. Andrew Shahan, Nancy Hunolt, Leo Hunolt

WOLLMAN, Circuit Judge.

This appeal stems from a dispute over the terms of automobile insurance policies issued by State Farm Mutual Automobile Insurance Company (State Farm) to Leo and Nancy Hunolt. After Andrew Shahan made a claim for underinsured motorist coverage under the policies, State Farm initiated this action seeking a declaration of non-responsibility. The Hunolts and Shahan counterclaimed, alleging vexatious refusal to pay. The district court 1 entered summary judgment for State Farm. We affirm.

I

In 1991, Andrew Shahan sustained significant injuries in a single-vehicle accident…