Pellerin v. Thibodeaux

716 So. 2d 131, 98 La.App. 3 Cir. 181, 1998 La. App. LEXIS 1546, 1998 WL 315550
CourtLouisiana Court of Appeal
DecidedJune 17, 1998
DocketNo. 98-181
StatusPublished
Cited by2 cases

This text of 716 So. 2d 131 (Pellerin v. Thibodeaux) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pellerin v. Thibodeaux, 716 So. 2d 131, 98 La.App. 3 Cir. 181, 1998 La. App. LEXIS 1546, 1998 WL 315550 (La. Ct. App. 1998).

Opinions

JjDOUCET, Chief Judge.

The only issue before this court is the granting, by the trial judge, of the Defendant insurer’s Motion for Summary Judgment finding that the Plaintiffs had entered into a valid exclusion of underinsured/uninsured motorist (UM) coverage. The plaintiffs appeal. For the following reasons, we affirm.

FACTS

This suit stems from a 1996 automobile accident in which Plaintiffs, Bonnie Pellerin and her minor daughter, allegedly sustained injuries. Mrs. Pellerin and her husband, Mervyn Pellerin, filed suit, individually and on behalf of their minor children, against the driver of the other vehicle involved in the accident, Brent Thibodeaux, his automobile insurance provider, International Indemnity Company, Land their own automobile insurance provider, Louisiana Farm Bureau Casualty Insurance Company.

Plaintiffs contend that, at the time of the accident, Farm Bureau provided Mrs. Pelle-rin with uninsured/underinsured motorist insurance coverage. However, upon Farm Bureau’s motion, the trial judge granted summary judgment finding that Mrs. Pelle-rin had entered into a valid rejection of the UM provision of her insurance coverage.

The Pellerins now appeal and argue that the trial court erred in finding that the UM rejection form constituted a valid waiver of coverage pursuant to La.R.S. 22:1406(D)(l)(a)(i).

LAW AND DISCUSSION

The Plaintiffs contend that the form rejecting UM coverage, although signed by Bonnie Pellerin, did “not state in ‘plain and unambiguous language’ that Louisiana law requires all automobile liability policies issued or delivered in the state to afford uninsured motorist coverage unless the insured rejects such coverage.” Rather, the form provides only the options of rejecting UM coverage or selecting lower limits. Therefore, the Plain[132]*132tiffs argue that Bonnie PeUerin’s signature did not constitute a meaningful waiver of UM coverage.

In Richard v. Cormier, 97-212, p. 2 (La. App. 3 Cir. 10/8/97); 702 So.2d 775, 775-776, quoting Longo v. Bercegeay, 96-1129, p. 1 (La.App. 3 Cir. 3/5/97), 692 So.2d 531, this court discussed the validity of UM rejection forms, stating:

Uninsured motorist coverage is required under an automobile insurance policy in not less than the limits of bodily injury liability unless the named insured rejects the coverage or selects lower limits. La. R.S. 22:1406(D)(l)(a)(i). The insured is afforded three options regarding UM coverage: 1) UM coverage with limits equal to the policy’s bodily injury limits, 2) UM coverage with limits lower than the |3policy’s bodily injury limits, or 3) no UM coverage. Tugwell v. State Farm Ins. Company, 609 So.2d 195 (La.1992); Banks v. Patterson Ins. Company, 94-1176 (La.App. 1 Cir. 9/14/95), 664 So.2d 127, writ denied, 95-2951 (La.2/16/96), 667 So.2d 1052.
The rejection or selection of lower limits must be done on a form provided by the insurer and signed by the named insured or a representative. La.R.S. 22:1406(D)(l)(a)(ii). The applicant must be given an opportunity to make a meaningful selection from the options available on the form employed by the insurer. Tugwell, 609 So.2d 195. The rejection “must be expressed clearly, unambiguously and unmistakably.” Henson v. Safeco Ins. Companies, 585 So.2d 534, 538 (La.1991).

The form on which this rejection must be perfected was not, at the time this matter was before the lower court, statutorily mandated. Rather, La.R.S. 22:1406(D)(l)(a)(ii)1 provided only that:

After September 1, 1987, such rejection or selection of lower limits shall be made only on a form designed by each insurer. The form shall be provided by the insurer and signed by the named insured or his legal representative. The form signed by the named insured or his legal representative which initially rejects such coverage or selects lower limits shall be conclusively presumed to become a part of the policy or contract when issued and delivered, irrespective of whether physically attached thereto.

|4The policy bought by Mi’s. Pellerin, afforded the minimum required liability coverage. The rejection form, which forms part of the policy, provides the following options:

□ I reject uninsured □ I select limits of motorist coverage. uninsured motorist coverage.
Signature Date Signature Date

Mrs. Pellerin placed an “X” in the left hand box and signed and dated (5/24/94) the rejection form. The form was also signed and dated by 'a representative of her insurance company.

The Louisiana Supreme Court, in Daigle v. Authement, 96-1662, p. 4 (La.4/8/97); 691 So.2d 1213, 1215, (footnotes omitted) approved a rejection form which simply read “I have been offered and I hereby reject Uninsured Motorist Bodily Injury coverage” stating:

[Wjhen an applicant elects to purchase only the minimum bodily injury limits al-[133]*133Iowable, the option of selecting UM coverage at limits lower that [sic] those in the policy is foreclosed' by law pursuant to La.R.S. 22:1406 D(l)(a)(i) and La.R.S. 32:900(B)(2). Because Daigle purchased bodily injury coverage in the minimum available limits, she could not lawfully opt to have UM coverage at lower limits. Accordingly, the form used by Louisiana Indemnity did not have to inform her of an unavailable option.
Daigle had only two options open to her under La.R.S. 22:1406, the statutorily mandated UM coverage or none at all. Louisiana Indemnity had to inform her of those two options and give her the opportunity to select between them. In our view, the form designed by Louisiana Indemnity did so in a manner sufficient to permit a valid rejection of UM coverage.

Additionally, in Richard v. Cormier, 97-212, pp. 3-4; 702 So.2d 775, 776-777, this court observed:

IsThe Louisiana Supreme Court in Daigle v. Authement, 96-1662, p. 6 (La.4/8/97), 691 So.2d 1213, 1216, rejected an argument that a place for acceptance of UM coverage must be included to allow a meaningful selection or rejection:
Moreover in Henson [v. Safeco Insurance Companies, 585 So.2d 534 (La. 1991) ], we held that the statute does not require an affirmative act to choose coverage. Any affirmative signature or mark accepting coverage would be mere surplusage, since the coverage is automatically extended by operation of law. An applicant does not have to sign a separate document opting for coverage already provided in the policy. Such a document could be thrown away after the insured’s execution of it without any effect whatsoever. The statute requires an affirmative act only if UM coverage is rejected altogether or, in an appropriate case,' where lower UM limits are statutorily permitted and desired. Accordingly, we cannot conclude that Louisiana Indemnity’s failure to set up its form so as to require a penstroke in favor of coverage renders the form defective.
See also Martin v. CNA Insurance Co., 96-1342 (La.App. 3 Cir. 4/2/97), 692 So.2d 677.
Therefore, the failure of Shelter to include on its form a place to elect UM coverage does not invalidate the Richards’ rejection of UM.

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Bluebook (online)
716 So. 2d 131, 98 La.App. 3 Cir. 181, 1998 La. App. LEXIS 1546, 1998 WL 315550, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pellerin-v-thibodeaux-lactapp-1998.