Opinion ID: 2219233
Heading Depth: 1
Heading Rank: 2

Heading: The DeGrands

Text: The facts in this case highlight the tragedy of the majority's holding. Briefly, General Motors Corporation is a manufacturer of motor vehicles. GMAC, a subsidiary of General Motors, is engaged in the business of financing motor vehicles. Motors Insurance Corporation (MIC), a subsidiary of GMAC, is an insurance company engaged in the business of insuring motor-vehicle-related risks. Ruby Chevrolet is an authorized dealer of General Motors vehicles. It has a showroom and office in Chicago, Illinois. At the same location, Ruby operates as an agent for GMAC to provide financing of motor vehicles. As a condition of financing, consumers are required to obtain auto insurance coverage. Ruby also operates, from the same location, as an insurance agency for MIC. This provides consumers with a one-stop facility at which they can purchase, finance, and insure motor vehicles. On February 8, 1986, the DeGrands completed a series of related transactions on the premises of Ruby Chevrolet in Chicago. This resulted in the purchase of a car from Ruby, financed by GMAC, and insured by MIC. The effective date of the policy was February 8, 1986, and provided bodily injury liability coverage of $100,000 per person and $300,000 per occurrence. The policy also included a combination of uninsured/underinsured motorist coverage of $15,000 per person and $30,000 per occurrence. Thus, in order to obtain financing for their auto purchase through GMAC, the DeGrands unwittingly purchased an automobile insurance policy from defendant MIC which provided them with virtually worthless underinsured motorist coverage. Upon discovering that their underinsured coverage was worthless, the DeGrands instituted the instant declaratory judgment action. In their depositions, both plaintiffs testified that MIC agent Michael O'Donnell took their order for automobile insurance by asking pertinent questions needed to complete MIC's printed application form. Then he requested Luke DeGrand to sign the application form in two places. Both plaintiffs also testified that agent O'Donnell never mentioned the phrase underinsured motorist coverage. As a result, they walked away from the MIC office on February 8, 1986, unaware of even the concept of underinsured motorist coverage, much less its availability to them. MIC, through agent O'Donnell, did not offer to sell plaintiffs underinsured coverage in any amount. Agent O'Donnell testified in his deposition that he did not recall making a specific offer of underinsured motorist coverage to the plaintiffs. However, he makes such an offer as a matter of course to all applicants. Curiously, agent O'Donnell also testified that he had no reason to advise the applicants to purchase uninsured motorist coverage up to their bodily liability limits because we weren't there really to sell insurance and, further, we essentially only try to move the car out and get the required [minimum] insurance. It is undisputed that the following text and signature appears in the body of the MIC application form: I acknowledge that I have been provided an opportunity to purchase uninsured motorists coverage up to the limits of my bodily liability limits.