ST. LOUIS — An insurance company is suing a daughter of policy owners, citing alleged breach of contract for agreeing to settle without their consent.

Farmers Insurance Co. Inc. filed a complaint on May 26 in the U.S. District Court for the Eastern District of Missouri Eastern Division against Kara Herwig alleging that she made a settlement agreement without the plaintiff's written consent, as stated in the underinsured motorist (UIM) insurance policy.

According to the complaint, the plaintiff alleges that on June 16, 2015, plaintiff was informed by the defendant that the accident on Jan. 14, 2011, was resolved when the insurance company of the other motorist agreed to pay bodily injury claims amounting $25,000. However, the defendant made a claim to the plaintiff for UIM coverage requesting a payment of $550,000. The plaintiff claims this is a direct violation of the policy due because the defendant entered into a settlement with the other motorist without its written consent. 

The plaintiff holds Herwig responsible because the defendant allegedly exceeded the amount for bodily injury claims of $550,000 when the total medical bills and costs just amounted to $13,000 and made a claim for UIM coverage settlement without the plaintiff's consent.

The plaintiff seeks to have no obligation to provide UIM coverage because to written consent was granted, claims it is not bound by the $550,000 judgment and is entitled to such other and further relief as the court deems just and proper. It is represented by Russell F. Watters of Brown and James PC in St. Louis.

U.S. District Court for the Eastern District of Missouri Eastern Division case number 4:17-cv-01573-NAB

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