Progressive Universal Ins. Co. v. Voyles

Under ORS 742.502, lower UM/UIM limits bind all insureds when elected by any named insured.

Defendant, an insured driver, appealed a declaratory judgment determining that his auto policy with Progressive Universal Insurance Company provided $50,000-per-person UIM limits, rather than $100,000, for injuries he sustained in a multi-vehicle accident. His spouse, listed as the sole named insured, had twice signed “Election of Lower Limits” forms selecting UM/UIM limits of $50,000/$100,000 instead of matching the $100,000/$300,000 liability limits. Progressive paid him $50,000 in UIM benefits and sought a declaration that no further UIM coverage was available; he countered that the UIM limit should be $100,000.

On cross-motions for summary judgment, the Court of Appeals held that ORS 742.502(2)(a)-(b) requires only a single written, signed statement to elect lower UM/UIM limits and does not demand two separate documents. The election forms are not “applications” under ORS 742.016 and need not be delivered with the policy to be effective. A person who will be the policy’s named insured may validly make the election at the application stage, and the statutory phrase “a named insured” means any named insured, so one named insured’s election binds all insureds on the policy. Thus, the Court AFFIRMED.