Opinion ID: 2228014
Heading Depth: 1
Heading Rank: 3

Heading: Stacking of Insurance Coverage.

Text: Stacking is a term which refers to the availability of more than one insurance policy, or one policy with multiple vehicles, providing reimbursement of the losses of the insured. Farm Bureau Mut. Ins. Co. v. Ries, 551 N.W.2d 316, 318 (Iowa 1996). It can occur either interpolicy or intrapolicy. Id. Interpolicy stacking occurs when the insured recovers underinsured or uninsured benefits under more than one policy. Id. Intrapolicy stacking occurs when the insured recovers underinsured or uninsured benefits for more than one vehicle under a single policy. Id. Our law governing stacking of insurance coverage is found in Iowa Code section 516A.2. [2] This section was amended by our legislature in 1991 to establish our current law on stacking. See 1991 Iowa Acts ch. 213, § 30. It first declares antistacking provisions contained in a motor vehicle insurance policy are enforceable. Iowa Code § 516A.2(1). This declaration specifically abrogated our decision in Hernandez v. Farmers Insurance Co., 460 N.W.2d 842 (Iowa 1990), and signaled our legislature's intention to intervene into the area. In Hernandez, we held antistacking provisions were unenforceable because they frustrated the mandatory uninsured and underinsured coverage requirements of section 516A.1. Thus, the first subsection of section 516A.2 clearly reflects legislative intent to permit insurers to include provisions in insurance policies which prohibit the stacking of uninsured and underinsured motorist benefits. We respect our legislature's judgment. Secondly, the section establishes that the insured and insurer may contract to include stacking of uninsured and underinsured coverage in a policy. Iowa Code § 516A.2(2). Thus, even though antistacking provisions may be included in an insurance policy, the parties may contract for provisions that provide for stacking, and, presumably, pay an additional premium for the coverage. Finally, Iowa Code section 516A.2(3) provides if more than one policy is purchased containing uninsured or underinsured motorist coverage, an insured injured by an uninsured or underinsured motorist is entitled to recover up to an amount equal to the highest limit for such coverage under any one  of the policies. Id. § 516A.2(3) (emphasis added). It also provides the amount shall be paid by the insurers according to any priority of coverage provisions in the policies. Id. This final provision primarily impacts the issue presented on appeal in this case. Mortensen argues section 516A.2(3) merely emphasizes insurers may place antistacking provisions in the policies. Heritage and Milwaukee argue this interpretation would essentially render subsections one and three duplicative. They claim section 516A.2(3) exists to provide direction under the circumstances presented in this case.