Grinnell Mutual Reinsurance Co. v. Recker

LAVORATO, Justice.

In this declaratory judgment action, the district court ruled that an insured was not entitled to underinsured motorist (UIM) benefits under an automobile policy because he had breached the policy’s “consent-to-settlement” clause. We affirm.

I. Background Facts.

Grinnell Mutual Reinsurance Company issued a family car policy to Dale and Judy Recker. The policy provided for $300,000 of UIM coverage. The UIM coverage provision provided:

Part III ... UNDERINSURED MOTORISTS

We will pay damages for bodily injury which an insured person is legally entitled to recover from the owner or…