Section 6.31 Underinsured Motor Vehicle

• Library: Insurance Practice 2015

The policy sets out the definition of “underinsured motor vehicle.” The language from company to company will vary and, in each case, the practitioner must look at the precise language in the policy.

In American Family Mutual Insurance Co. v. Turner, 824 S.W.2d 19 (Mo. App. E.D. 1991), American Family defined underinsured motor vehicle in the following manner: “Underinsured motor vehicle means a motor vehicle which is insured by a liability bond or policy at the time of the accident which provides bodily injury liability limits less than the damages an insured person is legally entitled to recover.” Id. at 20.

In American Economy Insurance Co. v. Cornejo, 866 S.W.2d 174 (Mo. App. E.D. 1993), American Economy Insurance Company defined underinsured motor vehicle as “a land motor vehicle or trailer of any type to which a bodily injury liability bond or policy applies at the time of the...