Opinion ID: 1302584
Heading Depth: 1
Heading Rank: 4

Heading: Farm Bureau's Endorsement.

Text: The Farm Bureau endorsement limits the underinsured coverage for an insured injured while occupying a vehicle not owned by the named insured to an amount that does not exceed the applicable minimum limit required by Iowa law for bodily injury liability. Section 516A.2(1) specifically states that an insurer will not be required to offer uninsured or underinsured motorist coverage in excess of those ... prescribed in subsection 10 of section 321A.1. We find the language of section 516A.2 permits the Farm Bureau endorsement limiting underinsured motorist benefits. Both Ries and the district court rely on Veach v. Farmers Insurance Co., 460 N.W.2d 845 (Iowa 1990), in finding the Farm Bureau policy unenforceable. The insurer in Veach sought to totally exclude coverage under its underinsured motorist policy when the insured was a passenger in a non-owned automobile. Veach, 460 N.W.2d at 846. We held the exclusion was invalid. Id. at 848. The Farm Bureau endorsement at issue here, however, is a limitation not an exclusion. Under its policy, Farm Bureau agrees the statutory minimum of $20,000 is payable to the insured. We hold the Farm Bureau endorsement is valid and enforceable. The district court judgment is reversed. REVERSED.