LeClair v. Allstate Insurance

Opinion

TAYLOR, P. J.

This is an appeal by Allstate Insurance Company (hereafter insurer) from a declaratory judgment determining that the uninsured motorist coverage in the automobile liability policy issued to J. A. R. Le-Clair (hereafter insured) had not been waived. The insurer contends that the insured’s initial written waiver remained in effect even after the insured instructed the insurer’s agent to increase the protection and liability afforded by the policy, commensurate with the insured’s changed economic and professional status.

[187]

The record reveals the following facts, substantially as found by the trial court: In August 1964, the insured was a dental intern, newly arrived from Ohio, who asked the insurer’s agent, Mr. Vais, to provide a “bare-bones” policy, as the insured could not afford to purchase greater coverage. Vais provided the insured with the minimum $10,000/$20,000 coverage and explained that the insured could sign the written waiver of uninsured motorist coverage to save the additional cost of that premium. The insured did so.

In April 1965, the insured telephoned Vais and explained that he was about to engage in the private practice of dentistry and wanted Vais to re-write and revise his automobile insurance protection accordingly. At this time, the insured was unable to afford greater protection. Vais had “binding authority” to make changes and knew of the insured’s changed circumstances as he carried a number of other policies for the insured, including the workmen’s compensation and liability policies for the insured’s dental office.

During this discussion with Vais, uninsured motorist coverage was not discussed; only bodily injury liability was specifically mentioned.. However, the insured did not intend to limit the re-writing and revision of his policy to only the bodily injury coverage, and depended on Vais to re-write the policy to provide the greater protection required by a dentist in private practice. Vais understood that the insured wanted to increase his protection and liability.

As a result of the discussion, the insured’s bodily injury liability coverage was increased to $100,000/$300,000, but the records of the insurer indicated no uninsured motorist coverage. After the insured’s 1966 accident with an uninsured driver, Vais expressed surprise that the deletion of uninsured motorist coverage initiated by the insured’s August 1964 waiver was still a part of the policy and apologized to the insured for the error.