Louisiana Compels UM/UIM Coverage When New Policy Issued Without New Rejection of UM/UIM

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Louisiana’s Legislature enacted a statute compelling Uninsured and Underinsured Motorist insurance unless the insured specifically rejects it on a form prepared by the state. In Martin Baack And Brenda Baack v. Michael Mcintosh, Et Al., No. 2020-C-01054, C/W No. 2020-C-1117, Supreme Court Of Louisiana (June 30, 2021) the insured rejected UM/UIM coverage properly but, when the policy was renewed, it failed to fulfill all of the requirements of the statute. The Louisiana Supreme Court interpreted the failure to initial parts of a form at renewal required that UM/UIM coverage even though the insured signed the rejection form.

ZALMA OPINION

Three justices dissented. The Supreme Court, faced with a severely injured plaintiff, decided that by not selecting one of four options on the state created form, although the insured signed the rejection form, was a selection of UM/UIM coverage. The blamed the underwriters for not forcing full compliance. The decision seems to be an act of sophistry, the Court of Appeal and Supreme Court wanted to help the injured person and found a way to interpret the policy and statute to change a rejection of UM/UIM coverage into a request for coverage.