Opinion ID: 1402930
Heading Depth: 2
Heading Rank: 2

Heading: Ambiguities in Other Insurance and Limit of Liability Clause

Text: The issue before this Court is the amount the Ritchies are owed and how that amount relates to possible conflicts within the other insurance provision and between the other insurance provision and the limit of liability provision. Allied argues that the limit of liability provision prohibits stacking of underinsured motorist coverages, so that the total potential limit of its liability is $100,000. Allied further argues that the policy provisions entitle it to a $60,000 set-off from this total because the Ritchies already have recovered $60,000 from the tortfeasors' insurers. Therefore, Allied says, it owes the Ritchies only $40,000. The Ritchies argue that even if the limit of liability provision could be so interpreted, the other insurance provision creates an exception and permits stacking where, as here, the insured was injured while riding in a non-owned vehicle. To the extent these policy provisions are inconsistent, they create an ambiguity that, under Missouri law, must be construed in favor of the insured. Gulf Ins. Co., 936 S.W.2d at 814. The Ritchies further argue that as in Jones, 287 S.W.3d at 690-93, the set-off language is inconsistent with the coverage provision stating that $100,000 in coverage will be provided, for in fact Allied's corporate representative admitted that amount of coverage never will be provided and, so, creates an ambiguity that similarly must be resolved in favor of coverage. [2] The pertinent language from the Allied policy on which both parties rely in support of these arguments is as follows: LIMIT OF LIABILITY A. The limit of liability shown in the Declarations for each person for Underinsured Motorists coverage is our maximum limit of liability for all damages for case, loss of services, or death arising out of bodily injury sustained by any one person in any one accident. Subject to this limit for each person, the limit of liability shown in the Schedule or in the Declarations for each accident for Underinsured Motorists Coverage is our maximum limit of liability for all damages for bodily injury resulting from any one accident. This is the most we will pay regardless of the numbers of: 1. Insureds; 2. Claims made; 3. Vehicles or premiums shown in the Declarations; or 4. Vehicles involved in the accident. B. The limit of liability shall be reduced by all sums: ... [p]aid because of `bodily injury' or by or on behalf of persons organizations who may be legally responsible ... OTHER INSURANCE If there is other applicable underinsured motorists coverage available under one or more policies or provisions of coverage: 1. Any recovery for damages may equal but not exceed the highest applicable limit for any one vehicle under this insurance or other insurance providing coverage on either a primary or excess basis. In addition, if any such coverage is provided on the same basis, either primary or excess, as the coverage we provided under this endorsement, we will pay only our share. Our share is the proportion that our limit of liability bears to the total of all applicable limits for coverage provided on the same basis. 2. Any coverage we provide with respect to a vehicle you do not own shall be excess over any other collectible underinsured motorist coverage. (emphasis added in italics). As the issues of stacking and set-off payments concern different subsections of the Allied policy, this Court will address each separately.