The agency called her and told her she had to initial the space. The form was returned to Ms. McClendon, who initialed in a space drawn by someone in Mr. Pridgen's office immediately adjacent to the check-marked space.

Thereafter, an accident between a truck driven by Ed Stone and owned by River City Logistics, his employer, and a Chevrolet Silverado driven by Stephen Card allegedly occurred on U.S. Highway 84 east of Jonesville, Louisiana.

Mr. Stone sued Mr. Card, Allstate Property and Casualty Insurance Company (Mr. Card's insurer), and Sentry as River City Logistics' UM carrier for damages he alleged that he had incurred in the accident.

Sentry moved for summary judgment, asserting that there was no UM coverage. Sentry relied, in its motion, on an affidavit executed by Ms. McClendon that affirmed her authority to execute the UM waiver on River City Logistics' behalf and that recounted the events surrounding its execution.

Mr. Stone filed his own motion for summary judgment and asserted that the policy provided UM benefits because the UM waiver had not been properly executed. He argued that the fact that Ms. McClendon had initialed the form after she signed it rendered the rejection invalid. He based his argument on the instructions contained in Louisiana Department of Insurance Bulletin 08-02:

The following tasks must be completed by the insured:

- His/Her signature

- His/Her printed name to identify his/her signature

- The date the form is completed

- Initials to select/reject UMBI coverage prior to signing the form.

The trial court denied Sentry's motion and granted Mr. Stone's. Sentry appealed.

The Appellate Court's Decision

The appellate court reversed.

In its decision, the appellate court was not persuaded that the instructions in Bulletin 08-02 governed, noting that instructions provided to the insured stated:

By law, your policy will include UMBI Coverage at the same limits as your Bodily Injury Liability Coverage unless you request otherwise. If you wish to reject UMBI Coverage, select lower limits of UMBI Coverage, or select Economic-Only UMBI Coverage, you must complete this form and return it to your insurance agent or insurance company.

In the appellate court's opinion, there was no requirement “that the insured must initial the selection or rejection before signing it.”

Rather, the appellate court said, “[t]he parties and the court should be able to look to the four corners of the rejection form to determine its validity.” Here, the appellate court said, “only the extrinsic evidence, Ms. McClendon's affidavit, would have indicated to anyone that the form was initialed after it was signed.”

In the appellate court's opinion, in no way could Ms. McClendon initialing the form as well as placing a check mark next to her selection be construed as creating any ambiguity in her selection; indeed, “it further demonstrate[d] Ms. McClendon's unmistakable intent to waive UM.”

The appellate court ruled that “mere formal deviation from the commissioner's form” was not sufficient to invalidate a UM waiver that “unmistakably” signified the insured's rejection or selection. That Ms. McClendon had intended to reject UM was “beyond all doubt,” the appellate court concluded.

The case is Stone v. Allstate Property and Casualty Ins. Co., Nos. 18-547, 18-763 (La. Ct. App. March 7, 2019). Attorneys involved include: Steven B. Rabalais, Melvin A. Eiden, Rabalais & Hebert, Lafayette, LA, COUNSEL FOR DEFENDANT/APPLICANT: Sentry Select Insurance Company. Barry A. Roach, Christopher S. Lacombe, Larry A. Roach, Inc., Lake Charles, LA, COUNSEL FOR PLAINTIFF/RESPONDENT: Ed Stone, Individually and as duly authorized agent of River City Logistics, Inc. Christina S. Slay, Bolen, Parker, Brenner, Lee & Engelsman, APLC, Alexandria, LA, COUNSEL FOR DEFENDANT/RESPONDENT: Allstate Property and Casualty Insurance Company.