In Gallon v. GEICO General Insurance Co., a man was injured in a one-car motor vehicle collision while riding as a passenger in a woman’s automobile. The man was thrown from the car and reportedly sustained serious harm as a result of the traffic wreck. At the time of the incident, the driver carried uninsured motorist (UM) coverage on her vehicle. Following the accident, the man made a claim with the driver’s insurer for UM benefits. The insurance company claimed that the woman’s UM policy limits were $50,000 per individual. The man argued that he was entitled to receive up to $100,000 because the woman maintained UM coverage on two separate vehicles. Since the parties failed to come to an agreement regarding the automobile insurance policy limits, the man filed a lawsuit against the insurer.
As part of his lawsuit, the man accused the automobile insurance company of negligent misrepresentation. In Florida, a party alleging such a cause of action must be able to demonstrate that a material fact was misrepresented, the party making the misrepresentation knew or should have known the statement was false, the statement was made to induce another to act on the misrepresentation, and injury resulted to the party who reasonably relied on the untrue statement.
According to the injured man, the driver’s insurance policy lapsed and was reinstated for a higher premium prior to the single-vehicle wreck. He claimed that a representative for the insurer told the woman her policy would pay double UM benefits in the event of a collision because she carried coverage on two autos. The injured man argued the insurer’s agent said this in order to convince the driver to pay higher premiums. The man also stated the driver relied on the worker’s statement, only to have the company limit the man’s damages award to $50,000. The insurance company countered that the driver could not have reasonably relied on the employee’s statement because it directly conflicted with the unambiguous language of the automobile insurance policy. A trial court sided with the insurer and granted the company’s motion to dismiss the man’s lawsuit.
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