American Family sued over under-insured coverage

Kelly Holleran Sep. 26, 2012, 1:30am


A woman has filed suit against her insurance company, alleging it failed to compensate her for injuries she sustained in a collision.

Nancy Nance claims she was driving a 2007 Toyota Yaris west on Olive Boulevard on May 18, 2010, when she stopped at a stop sign. Suddenly, Kyle McGill, who was driving a 1991 Oldsmobile Cutlass, struck the back of McGill's vehicle, according to the complaint filed Sept. 20 in Madison County Circuit Court.

Because of the collision, Nance incurred medical costs of more than $26,000 and lost wages, the suit states.

Following the collision, Nance received a $50,000 payment from McGill's insurance company, the complaint says. However, she claims the money was not enough to fully compensate her for the damages she sustained.

In turn, Nance attempted to collect money from her insurance company, defendant American Family Mutual Insurance Company, according to the complaint. At the time of the collision, she had a policy that was supposed to cover damages sustained in an accident with an under insured driver, the suit states. However, American Family refused to compensate her, the complaint says.

Nance alleges breach of contract and vexatious refusal to pay against American Family.

In her two-count complaint, Nance is seeking a judgment of more than $50,000, plus attorney's fees, costs and other relief the court deems just.

Aaron M. Vogel of Schultz and Myers in St. Louis will be representing her.

Madison County Circuit Court case number: 12-L-1510.

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