Farm Bureau v. Dana’s Impact On Future UIM Claims

In Farm Bureau v. Dana, the North Carolina Supreme Court held that the Financial Responsibility Act requires a claimant to treat the per accident limit of coverage as the total sum that is available to all claimants entitled to a share of available UIM coverage, provided that the amount of UIM coverage available to any individual claimant is limited to the per person amount.

The decision is a shift from how the Court of Appeals applied the statute in similar past cases, most recently Farm Bureau v. Gurley.

Factual Background
On February 3, 2016, Matthew Bronson operated his vehicle while intoxicated and struck a vehicle being driven by Pamela Dana. Mrs. Dana was killed as a result of the accident, and her passenger, William Dana, was seriously injured.

Jessica Jones, a passenger in Bronson’s vehicle, was also killed in the accident, and a third vehicle operated by Joshua Ryan Jeffries was damaged in the accident.

Bronson had automobile insurance coverage through Integon National Insurance Company with liability limits of $50,000.00 per person and $100,000.00 per accident. Mrs. Dana was insured under a policy issued by Farm Bureau that included underinsured motorist (UIM) coverage with limits of $100,000 per person and $300,000 per accident.