Pierce v. Mid-Century Insurance Co.

¶ 1.

LUNDSTEN, J.

This appeal relates to the enforceability of an automobile insurance policy provision that is part of the policy's definition of an underin-sured motor vehicle. As pertinent here, this provision has the effect of excluding passengers of an insured's vehicle from the policy's underinsured motorist (UIM) coverage when the insured driver was at fault and was operating a vehicle insured by the policy's liability coverage. The main purpose of this exclusion, as explained below, is to prevent a policy's UIM coverage from acting as supplementary liability coverage under the same…