Opinion ID: 1879387
Heading Depth: 1
Heading Rank: 2

Heading: Credit for the Medical Payment.

Text: Globe paid Christine Kasal $1000 under its medical payment provision covering the car being driven by her. The district court gave Globe credit for that amount against its uninsured motorist liability. Grinnell Mutual argues on appeal that this was error. Iowa Code section 516A.2 (1985), regarding policy requirements for uninsured and underinsured motorist coverage, allows the policies to provide offsets which are designed to avoid duplication of insurance or other benefits. This section was addressed in Lemrick v. Grinnell Mutual Reinsurance Co., 263 N.W.2d 714, 718 (Iowa 1978): Under § 516A.2 and McClure, a policy paragraph can be drafted and enforced.... But the language of the paragraph must show that such is the intent, and an ambiguity in the paragraph is of course resolved against the insurer. Moreover, the existence of a statute such as § 516A.2 does not automatically allow deduction of such insurance as medical payments. An appropriate implementing paragraph in the policy is essential. Id. (citations omitted). The question in this case is whether the language of Globe's policy shows an intent to offset medical payments against uninsured motorist claims. Globe argues it does, pointing to this provision of its policy: B. However, if other medical expense coverage ... [is] available to pay the same medical expense, the coverage under this policy is excess coverage over and above all such other insurance and this policy will not apply to that amount of medical expense which is paid or payable by such other coverage. We agree with Grinnell Mutual that this provision does not permit the offsetting of medical payments against Globe's uninsured motorist liability. It is an other insurance provision with respect to other insurance covering medical expense; it does not even purport to deal with uninsured motorist coverage. We conclude it was error for the court to order the $1000 credit to be given to Globe. We reverse and remand for entry of a judgment providing for payment of the claim by Globe to the extent of the limits of its liability and any excess payment to be made by Grinnell Mutual. This judgment shall not give credit to Globe for any medical payment made under its policy. REVERSED AND REMANDED ON APPEAL; AFFIRMED ON CROSS-APPEAL.