Opinion ID: 1877723
Heading Depth: 1
Heading Rank: 4

Heading: The Policy Provides Coverage

Text: The law regarding construction of an insurance contract is well settled. If the language of the policy is unambiguous, we will give effect to the plain language of the policy without resorting to the rules of construction. Elam v. First Unum Life Ins. Co., 346 Ark. 291, 297, 57 S.W.3d 165 (2001). On the other hand, if the language is ambiguous, we will construe the policy liberally in favor of the insured and strictly against the insurer. Id. Policy language is ambiguous if there is doubt or uncertainty as to its meaning and it is fairly susceptible to more than one reasonable interpretation. Id. The issue in this case is whether the terms of the policy at issue provide underinsured coverage for bodily injury suffered by an insured person in a one-vehicle accident caused by an underinsured driver driving the vehicle insured under the policy. The policy provides: PART II-UNINSURED MOTORISTS Coverage CUninsured Motorist Coverage (Including Underinsured Motorist Coverage) We will pay all sums which an insured person is legally entitled to recover as damages from the owner or operator of an uninsured motor vehicle because of bodily injury sustained by the insured person. The bodily injury must be caused by accident and arise out of the ownership, maintenance or use of the uninsured motor vehicle. Thus, the uninsured provision appears to require that the bodily injury arise from involvement of the uninsured vehicle in the accident. We note that while this provision uses the term uninsured, it also includes the language, (Including Underinsured Motorist Coverage) in the title. Just what that means is unclear. However, underinsured coverage is directly addressed in endorsement s1879, which provides: COVERAGE C-I UNDERinsured MOTORIST COVERAGE For an additional premium, it is agreed that UNDERinsured Motorist Coverage C-1 is added to Part II of your policy. We will pay all sums which an insured person is legally entitled to recover as damages from the owner or operator of an UNDERinsured motor vehicle because of bodily injury sustained by the insured person. The endorsement contains definitions for underinsured coverage: Underinsured Motor Vehicle  means a land motor vehicle which is insured by a bodily injury bond or policy at the time of the accident, and provides coverage less than an Insured person is legally entitled to recover as damages because of bodily injury sustained by an Insured person. Underinsured Motor Vehicle does not include a land motor vehicle: a. insured under the liability coverage of this policy; b. owned by or furnished or available for the regular use of you or any family member;