Eighth Circuit Expands Underinsured Motorist Coverage Through Interpretation Of "You"

The Eighth Circuit recently overturned a district court's decision, concluding that an automobile insurance policy subjected underinsured motorist claims by two spouses to a single $250,000 per-person limit. The court's analysis turned on the interpretation of the word "and" in the policy's definition of "you," read in conjunction with Missouri law.

In the case of Auto-Owners Mt. Ins. Co. v. Granger¹, the insured driver Randy Granger suffered severe injuries in a car accident. The at-fault driver paid policy limits of $25,000, after which Randy Granger sought underinsured motorist benefits. The insurer paid the policy's per-person limit of $250,000. Randy's wife, Beverly Granger, also filed a claim with the insurer for loss of consortium damages to cover the decline in "affection, care, companionship, and services" because of her husband's injuries.