State Farm Mutual Automobile Insurance Co. v. Burke

Defendant insurer waived its policy defenses for uninsured motorist coverage, by extending coverage to couple and their minor son, who were in car accident with uninsured motorist. Record clearly shows that Defendant insurer told couple that it was "granting coverage" under its policy. Defendant insurer never told couple that, although it was not liable under the policy, it was willing to nevertheless settle their claims to avoid further dispute.  The grant of coverage transformed defendant insurer's conduct unambiguously into a waiver of its policy defenses.(SCHOSTOK and ZENOFF, concurring.)