Insured’s Reasonable Expectations Cannot Overcome a Clear and Unambiguous Policy Endorsement

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During my more than 53 years working in the business of insurance I have asked every person insured I encountered whether the read and understood their insurance policy. Of the thousands I asked only two replied affirmatively and after close examination I established that they both lied.

In Giselle Polizzi v. Liberty Mutual Fire Insurance Company, Civil Action No.: 14-02768, United States District Court District Of New Jersey (January 26, 2021) the Plaintiff claimed that her reasonable expectations of coverage overcame the language of an endorsement the reduced the available underinsured motorist insurance coverage (UIM) from $250,000 to $15,000. 

ZALMA OPINION

The court followed the RFIP rule and read the full policy. Since the policy was purchased by Plaintiff’s parents, and one can reasonably conclude she did not read it until her lawyers found the tortfeasor had inadequate insurance to pay for her injuries. Her expectations were unreasonable and an attempt to get coverages for which her parents did not pay.