Rahimzadeh v. Ace American Insurance Co.

Plaintiff filed a lawsuit alleging a breach of an insurance contract after the defendant insurance company denied plaintiff’s underinsured motorist claim on the grounds that he did not qualify as an insured under his employer’s commercial automobile insurance policy. The district court granted the defendant’s motion to dismiss for failure to state a claim and plaintiff appealed. The Seventh Circuit affirmed, finding that plaintiff, who was riding a bicycle, was not occupying a covered vehicle at the time of the accident and was not an insured for the purposes of liability coverage. (BRENNAN and KOLAR, concurring)