Opinion ID: 2639219
Heading Depth: 1
Heading Rank: 6

Heading: Coverage under Farm Bureau Policy

Text: Having concluded that K.S.A. 40-284(b) precludes UIM coverage in the circumstances of this case, we consider whether the language of Farm Bureau's policy provides such coverage. In order for Halsey to prevail, he must establish that his policy provides greater benefits than would be provided under K.S.A. 40-284(b). Halsey's policy with Farm Bureau used the following language to provide the UIM benefits required at K.S.A. 40-284(b): We will pay damages which an insured person is legally entitled to recover from the owner or operator of an uninsured motor vehicle or an underinsured motor vehicle because of bodily injury; (1) Sustained by an insured person; and (2) Caused by an accident. The owner's or operator's liability for these damages must arise out of the ownership, maintenance or use of the uninsured motor vehicle or the underinsured motor vehicle. We will pay damages under this coverage caused by an accident with an underinsured motor vehicle, only after the limits of liability under any applicable bodily injury liability bonds or policies have been exhausted by payment judgments or settlements. The policy provides for the following definition: Underinsured motor vehicle means a land motor vehicle, trailer or semi-trailer of any type to which one or more bodily injury liability bonds or policies apply at the time of the accident but their limits for bodily injury liability is less than the limit of uninsured motorists coverage provided in this policy. Last, the policy contains the following limitation: Coverage for losses caused by an underinsured motorist shall be limited to the difference between the underinsured motorist coverage limits provided in this part and the coverage limits provided in all applicable bodily injury bonds or policies. The policy language explicitly requires the UIM benefits to be limited by the limits of the tortfeasor's policy. The policy language specifies that the relevant limits are the ones provided in the policy. We conclude that Halsey's policy with Farm Bureau reflects the provisions of K.S.A. 40-284(b) and provides no UIM benefits beyond those required by the statute. Reversed and remanded with directions to the district court to enter judgment for Farm Bureau.