ATTORNEY FOR APPELLANTS ATTORNEYS FOR APPELLEE
Edmond W. Foley Michael P. Blaize
South Bend, Indiana Crown Point, Indiana
Karl L. Mulvaney
Nana Quay-Smith
Indianapolis, Indiana
ATTORNEYS FOR AMICI CURIAE
INSURANCE INSTITUTE OF INDIANA, INC. AND
NATIONAL ASSOCIATION OF MUTUAL
INSURANCE COMPANIES
John C. Trimble
Richard K. Shoultz
Indianapolis, Indiana
______________________________________________________________________________
In the FILED
May 13 2009, 2:33 pm
Indiana Supreme Court
_________________________________ CLERK
of the supreme court,
court of appeals and
tax court
No. 71S03-0810-CV-558
MAGGIE BUSH AND LEONARD BUSH,
Appellants (Plaintiffs below),
v.
STATE FARM MUTUAL AUTOMOBILE
INSURANCE COMPANY,
Appellee (Defendant below).
_________________________________
Appeal from the St. Joseph Circuit Court, No. 71C01-0605-CT-00071
The Honorable Michael G. Gotsch, Judge
_________________________________
On Petition to Transfer from the Indiana Court of Appeals, No. 71A03-0706-CV-286
_________________________________
May 13, 2009
Boehm, Justice.
We hold that an uninsured motorist policy restricting coverage to bodily injury or death
sustained by an insured does not violate Indiana’s uninsured motorist statute.
Facts and Procedural History
On March 10, 2004, fifty-six-year-old Leonard Bush, Jr. (“Leonard”) was killed as a
passenger in a single-vehicle accident. The accident was caused by the negligence of the driver,
who was uninsured. Leonard also had no insurance covering the accident or the vehicle.
Leonard’s parents, Leonard Bush, Sr. and Maggie Bush (“the Bushes”), were not
involved in the accident. The Bushes were insured under an automobile policy issued by State
Farm Mutual Automobile Insurance Company that provided uninsured motorist coverage. The
policy provided:
We will pay damages for bodily injury and property damage an insured is legally
entitled to collect from the owner or driver of an uninsured motor vehicle. The
bodily injury must be sustained by an insured. The bodily injury or property
damage must be caused by accident arising out of the operation, maintenance or
use of an uninsured motor vehicle.
State Farm defined “insured” for purposes of its uninsured motorist coverage to include the
Bushes and their “relatives,” defined as persons related by blood, marriage, or adoption who
“reside primarily” with them. Leonard did not reside with his parents at the time of the accident
and therefore was not an “insured” under the Bushes’ policy.
The Bushes sued State Farm, claiming that they sustained damages arising out of the
conduct of an uninsured motorist, and State Farm’s failure to provide uninsured motorist benefits
was a breach of the insurance contract. The complaint did not set out whether the claim was
asserted under the Adult Wrongful Death Statute, Ind. Code § 34-23-1-2 (2004), or under some
other theory.1 State Farm counterclaimed, seeking a declaratory judgment that its policy
provided no coverage for Leonard’s death because no “insured” sustained “bodily injury.”
1
Although Leonard was killed in an accident in New Mexico, the parties and amici present this case as
one implicating only Indiana law, so we resolve it on that assumption.
The Insurance Institute of Indiana, Inc. and National Association of Mutual Insurance
Companies, as amici curiae, point out that Indiana’s Adult Wrongful Death Act authorizes only the
personal representative of Leonard’s estate to bring a wrongful death action, yet the Bushes have not
brought this action in that capacity. Amici argue that the only claim the personal representative could
bring under an uninsured motorist policy would be under an uninsured motorist policy that included
Leonard as an insured. State Farm does not raise this point, and we therefore do not address it.
2
Both parties moved for summary judgment on the issue of the Bushes’ right to recover
under the State Farm policy. The Bushes argued that State Farm’s requirement that an insured
sustain bodily injury violated Indiana’s uninsured motorist statute, Indiana Code section 27-7-5-
2. State Farm responded that its requirement was a permissible limitation of coverage that had
implicitly been approved by Indiana courts. The trial court granted summary judgment to State
Farm, concluding that Leonard was not covered by the policy because he did not meet the
policy’s definition of “relative,” and therefore was not an “insured.” The trial court did not
address the Bushes’ contention that State Farm’s policy, as construed by State Farm, violated the
uninsured motorist statute.
The Court of Appeals reversed, holding that State Farm’s exclusion of coverage for
Leonard violated Indiana’s uninsured motorist statute. Bush v. State Farm Mut. Auto. Ins. Co.,
882 N.E.2d 821, 822 (Ind. Ct. App. 2008), reh’g denied. The Court of Appeals reasoned that the
Bushes were insureds who were legally entitled to recover damages for their son’s death. Id. at
825. Judge Barnes dissented, concluding that Armstrong v. Federated Mutual Insurance Co., 785
N.E.2d 284 (Ind. Ct. App. 2003), trans. denied., controlled this case and approved State Farm’s
limitation of coverage to bodily injury sustained by an insured. Bush, 822 N.E.2d at 825–26.
We granted transfer.
Standard of Review
We review an appeal from a summary judgment order de novo. Univ. of S. Ind. Found.
v. Baker, 843 N.E.2d 528, 531 (Ind. 2006). Summary judgment is appropriate when the
evidence shows no genuine issue of material fact and the moving party is entitled to judgment as
a matter of law. Ind. Trial Rule 56(C).
Uninsured Motorist Coverage
Indiana courts have long held that a provision in an automobile liability policy is
unenforceable if it is inconsistent with Indiana’s uninsured motorist statute. State Farm Mut.
Auto. Ins. Co. v. Jakupko, 881 N.E.2d 654, 661 (Ind. 2008) (quoting Patton v. Safeco Ins. Co. of
Am., 128 Ind. App. 548, 555, 267 N.E.2d 859, 862 (1971)). The issue before us, one of first
impression in Indiana, is whether State Farm’s uninsured motorist policy, by requiring that
3
bodily injury2 be sustained by an insured, violates Indiana’s uninsured motorist statute and is
therefore unenforceable.
Indiana Code section 27-7-5-2 requires an automobile liability policy subject to the
Indiana statute to make coverage available
in limits for bodily injury or death . . . not less than those set forth in IC 9-25-4-5
. . . for the protection of persons insured under the policy who are legally entitled
to recover damages from owners or operators of uninsured or underinsured motor
vehicles because of bodily injury, sickness or disease, including death . . . .
The statute itself makes clear that it contemplates uninsured motorist coverage only for the
“insured’s” bodily injury. Section 27-7-5-5(c) defines the “maximum amount payable for bodily
injury under uninsured or underinsured motorist coverage” by reference to “the insured’s bodily
injury.” State Farm’s policy is therefore consistent with the uninsured motorist statute by
requiring that the insured sustain bodily injury to trigger uninsured motorist coverage.
The Bushes argue that State Farm’s definition of “bodily injury” is ambiguous and could
be construed as including emotional distress sustained by persons who do not sustain bodily
injury. If this were a viable claim, the Bushes could assert it in their individual capacities. But
this contention is foreclosed by Jakupko, which interpreted the same definition of bodily injury
to include emotional distress only if it arises from a bodily touching. 881 N.E.2d at 658.
Earlier cases from the Court of Appeals also support the validity of State Farm’s
requirement that the bodily injury be sustained by an insured. For example, in Ivey v.
Massachusetts Bay Insurance Co., a husband brought an action to recover damages for the
wrongful death of his wife, from whom he was separated. 569 N.E.2d 692, 693 (Ind. Ct. App.
1991). The husband did not argue that the wife was an insured under the policy, but instead
argued that Indiana’s uninsured motorist statute required coverage for her death. Id. at 694. The
Court of Appeals disposed of the case by concluding that the husband
failed to preserve a wrongful death claim, because no personal representative has
been appointed within two years. Hence, the underlying right of action is no
longer available, and [the husband] is no longer legally entitled to recover
damages from the uninsured motorist. Therefore, [the husband] does not meet the
2
State Farm’s policy defines bodily injury as “bodily injury to a person and sickness, disease or death
which results from it,” which is consistent with the statutory requirement that “bodily injury, sickness or
disease, including death” be covered by uninsured motorist coverage. We use “bodily injury” as the
policy defines it.
4
insurance statute or policy requirement that he be legally entitled to recover from
the uninsured motorist.
Id. at 694–95 (footnote omitted). The Court of Appeals also noted that the husband had not
sustained any bodily injury. Id. at 695. Other jurisdictions have cited Ivey for the proposition
that Indiana’s uninsured motorist statute requires that the insured have sustained bodily injury.
E.g., Butterfield v. Norfolk & Dedham Mut. Fire Ins. Co., 860 A.2d 861, 863 n.2 (Me. 2004).
Although Ivey answered this question only in dicta, that language has been in place for over
fifteen years.
Similarly, in Armstrong v. Federated Mutual Insurance Co., the Court of Appeals held
that parents could not recover under their underinsured motorist policy for the death of their
nineteen-year-old daughter. 785 N.E.2d 284, 293 (Ind. Ct. App. 2003), trans. denied. The
parents argued that their loss of love and companionship was a “bodily injury” compensable
under the policy. The Court of Appeals noted that “even if it were considered a bodily injury,
the [parents] could not thereby recover under Federated’s policy because they suffered no
physical impact.” Id. Although Armstrong did not consider whether Federated’s policy violated
Indiana’s uninsured motorist statute, Armstrong has been the law for over five years with no
legislative response.
The Bushes point to the language in subsection 27-7-5-2(a) preceding subsections (a)(1)
and (2). Section 2(a) provides
The insurer shall make available, in each automobile liability or motor vehicle
liability policy . . . insuring against loss resulting from liability imposed by law
for bodily injury or death suffered by any person . . . arising from the ownership,
maintenance, or use of a motor vehicle, or in a supplement to such a policy, the
following types of coverage [described in subsections (a)(1) and (2)] . . . .
The Bushes point out that this language refers to bodily injury suffered by “any person,” which
includes Leonard’s death. This language describes those automobile liability policies that are
required to make available uninsured motorist coverage. It provides that if the Bushes are
insured against liability for their injuring “any person,” uninsured motorist coverage must be
offered. But the “any person” language does not relate to or describe in any way the scope of the
uninsured motorist coverage.
Our holding is also consistent with the public policy underlying the uninsured motorist
statute. The Bushes cite United National Insurance Co. v. DePrizio, in which we explained that
5
“[u]ninsured motorists coverage” is designed to close the gaps inherent in motor
vehicle financial responsibility and compulsory insurance legislation, and this
insurance coverage is intended, within fixed limits, to provide financial
recompense to innocent persons who receive injuries and the dependents of those
who are killed, through the wrongful conduct of motorists who, because they are
uninsured and not financially responsible, cannot be made to respond in damages.
705 N.E.2d 455, 459 (Ind. 1999) (quoting Wright v. Fid. & Cas. Co. of N.Y., 155 S.E.2d 100,
106 (N.C. 1967)). The Bushes argue that this purpose requires coverage here. They assume that
had Leonard been killed in a collision with an insured driver, they would have been legally
entitled to recover from that insurance. For the reasons already given, that assumption is
incorrect.
Finally, although this issue is one of first impression in Indiana, our conclusion is
consistent with the substantial majority of other states that have addressed the issue under their
uninsured motorist statutes.3 Fifteen states have interpreted their statutes to require that injury be
sustained by an insured.4 Seven states have interpreted their statutes as requiring compensation
for injuries sustained by third parties,5 but in at least four of these, the legislature subsequently
3
At least fifteen states’ statutes require coverage “for the protection of persons insured thereunder who
are legally entitled to recover damages from owners or operators of uninsured motor vehicles because of
bodily injury, sickness or disease, including death,” or something substantially similar. Alaska Stat. §
28.20.440 (2008); Ariz. Rev. Stat. Ann. § 20-259.01 (2002); Cal. Ins. Code § 11580.2 (West 2005); Colo.
Rev. Stat. Ann. § 10-4-609 (West 2008); Del. Code Ann. tit. 18, § 3902 (1999); Fla. Stat. Ann. § 627.727
(West 2005); 215 Ill. Comp. Stat. Ann. 5/143 (West Supp. 2009); Iowa Code Ann. § 516A.1 (West 2007);
La. Rev. Stat. Ann. § 22:1295 (2004); Miss. Code Ann. § 83-11-101 (1999); Mo. Ann. Stat. § 379.203
(West 2002); N.M. Stat. Ann. § 66-5-301 (West 2003); Okla. Stat. Ann. tit. 36, § 3636 (West Supp.
2009); S.D. Codified Laws § 58-11-9 (2000); Utah Code Ann. § 31A-22-305(3)(a) (Supp. 2008); Wash.
Rev. Code Ann. § 48.22.030 (West Supp. 2009).
4
State Farm Mut. Ins. Co. v. Wainscott, 439 F. Supp. 840 (D. Alaska 1977); Bartning v. State Farm Fire
& Cas., 793 P.2d 127 (Ariz. Ct. App. 1990); Smith v. Royal Ins. Co., 230 Cal. Rptr. 495 (Cal. Ct. App.
1986); Farmers Ins. v. Chacon, 939 P.2d 517 (Colo. Ct. App. 1997); Temple v. Travelers Indem. Co., No.
88C-08-088 WCC, 2000 WL 33113814 (Del. Super. Ct. Nov. 30, 2000); Valiant Ins. Co. v. Webster, 567
So. 2d 408 (Fla. 1990); State Farm Mut. Auto. Ins. Co. v. George, 762 N.E.2d 1163 (Ill. App. Ct. 2002);
Lafleur v. Fid. & Cas. Co. of N.Y., 385 So. 2d 1241 (La. Ct. App. 1980); Gillespie v. S. Farm Bureau
Cas. Ins. Co., 343 So. 2d 467 (Miss. 1977); Livingston v. Omaha Prop. & Cas. Ins. Co., 927 S.W.2d 444
(Mo. Ct. App. 1996); London v. Farmers Ins. Co., 63 P.3d 552 (Okla. Civ. App. 2002); Gloe v. Iowa Mut.
Ins. Co., 694 N.W.2d 238 (S.D. 2005); Eaquinta v. Allstate Ins. Co., 125 P.3d 901 (Utah 2005); Allstate
Ins. Co. v. Hammonds, 865 P.2d 560 (Wash. Ct. App. 1994); Strum v. Swanson, 653 S.E.2d 667 (W. Va.
2007).
5
Gordon v. Atlanta Cas. Co., 611 S.E.2d 24 (Ga. 2005); Hinners v. Pekin Ins. Co., 431 N.W.2d 345
(Iowa 1988); Forbes v. Harleysville Mut. Ins. Co., 589 A.2d 944 (Md. 1991); Butterfield v. Norfolk &
Dedham Mut. Fire Ins. Co., 860 A.2d 861 (Me. 2004); State Farm Mut. Auto. Ins. Co. v. Selders, 190
6
amended the statute to require that the injury be sustained by an insured.6 In short, the clear
weight of authority from other jurisdictions supports our conclusion that Indiana’s uninsured
motorist statute requires coverage only for bodily injuries sustained by an insured.
Apart from the problem that they did not suffer “bodily injury,” the Bushes have no
uninsured motorist coverage for Leonard’s death because, in their individual capacities, they are
not persons “legally entitled to recover damages” for Leonard’s death. At common law, there
was no tort liability for wrongful death because personal injury actions did not survive the
injured party’s death. Estate of Sears ex rel. Sears v. Griffin, 771 N.E.2d 1136, 1138 (Ind. 2002).
As a result, wrongful death actions are purely statutory. Id. In Indiana, claims for the death of a
person must be brought under either the Child Wrongful Death Act, the Adult Wrongful Death
Act, or the general Wrongful Death Act. See id. Leonard was an unmarried childless adult, and
therefore his death is governed by the Adult Wrongful Death Act. I.C. § 34-23-1-2(a). A claim
under that statute may be asserted only by the decedent’s estate. Id. § 34-23-1-2(b). This is no
mere technicality. If the claim is asserted under the Adult Wrongful Death Act, some proceeds
are subjected to creditors of the decedent’s estate, and aggregate damages for loss of love and
companionship are capped at $300,000. Id. § 34-23-1-2(d), (e).
Conclusion
The trial court’s grant of summary judgment is affirmed.
Shepard, C.J., and Dickson, Sullivan, and Rucker, JJ., concur.
N.W.2d 789 (Neb. 1971); State Farm Mut. Auto. Ins. Co. v. Luebbers, 119 P.3d 169 (N.M. Ct. App.
2005); Sexton v. State Farm Mut. Auto. Ins. Co., 433 N.E.2d 555 (Ohio 1982).
6
In response to Sexton, Ohio’s uninsured motorist statute, Ohio Rev. Code Ann. § 3937.18, was amended
to require that the injury be “suffered by any person insured under the policy.” 1994 Ohio Laws 184;
2000 Ohio Laws 193, § 3. Georgia’s statute, Ga. Code Ann. § 33-7-11, now requires the bodily injury or
death be “of an insured.” 2006 Ga. Laws 768. Maine’s statute, Me. Rev. Stat. Ann. tit. 24-A, § 2902,
was amended to require that the bodily injury or death be sustained “by an insured person.” 2006 Me.
Legis. Serv. Ch. 591 (H.P. 1422) (L.D. 2021) (West). Maryland’s former statute, Md. Code Ann. art.
48A, § 541, was replaced with a statute that provides coverage for damages “because the insured died.”
Md. Code Ann., Ins. § 19-509.
7