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Shelter Mutual Insurance Co. v. Thompson5/24/1993
JUSTICE VOLLACK delivered the Opinion of the Court.
Petitioners Shelter Mutual Insurance Company and Shelter General Insurance Company (referred to collectively as Shelter) petition from the court of appeals opinion in Thompson v. Shelter Mutual Insurance Co., 835 P.2d 518 (Colo. App. 1991). The court of appeals held that "anti-stacking language in automobile insurance policies which attempts to limit underinsured motorist benefits to an insured covered simultaneously by two or more policies is adverse to the law and public policy of this state and is void and unenforceable." Id. at 524. We reverse.
I.
The parties stipulated to the following facts. Christopher Eric Thompson (Thompson) purchased six separate motor vehicle insurance policies for six separate vehicles with Shelter. These policies contained the following limits on uninsured/underinsured motorist benefits for each owned vehicle:
1. 1984 Nissan ($50,000) (the vehicle involved in the September 23, 1987, collision);
2. 1986 Ford ($50,000);
3. 1984 Yamaha motorcycle ($25,000);
4. 1982 Yamaha motorcycle ($25,000);
5. 1982 Suzuki motorcycle ($25,000);
6. 1980 Suzuki motorcycle ($25,000).
On September 23, 1987, Thompson was injured in an automobile accident while driving his 1984 Nissan. The driver of the other vehicle involved in the accident was insured by State Farm Insurance. Thompson filed a personal injury claim against the other driver, and settled this claim on May 24, 1989, for the policy limit of $50,000.
On June 6, 1989, after settling with the other driver's insurance carrier, Thompson sought underinsured motorist benefits from Shelter in excess of $50,000. Thompson claimed that his six insurance policies should be combined or "stacked" to provide him with uninsured/underinsured benefits in the amount of $200,000.
On August 9, 1989, Shelter denied Thompson's claim for underinsured motorist coverage, and asserted that the terms of the Shelter policies precluded Thompson from recovering any underinsured motorist benefits. The relevant insurance policy provisions state:
PART IV - UNINSURED MOTORISTS
LIMITS OF LIABILITY
(5) Our maximum liability under the uninsured motorists coverage provided shall be the lesser of:
(a) the difference between the limit of uninsured motorists coverage provided and the amount paid to the insured by or for any person or organization who may be held legally liable for the bodily injury ; or
(b) the amount of damages sustained, but not recovered.
OTHER INSURANCE
Part VII - CONDITIONS
OTHER AUTO INSURANCE IN THE COMPANY
With respect to any occurrence, accident, death, or loss to which this and any other auto insurance policy issued to you by us also applies, the total limit of our liability under all these policies won't exceed the highest applicable limit of liability or benefit amount under any one policy.
In light of these insurance policy provisions, Shelter reasoned that the underinsured motorist coverage available under Thompson's six policies is equal to the single policy limit of $50,000 applicable to the 1984 Nissan minus any recovery obtained from' State Farm. Because Thompson recovered $50,000 from State Farm, Shelter concluded that there remained no underinsured motorist coverage available to Thompson.
Thompson filed a complaint for declaratory relief, and both parties subsequently filed motions for summary judgment. In an August 8, 1990, order, the district court he
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