Sanchez

I. Background

Sanchez insured his Honda motorcycle with GEICO in 2007. He selected bodily injury coverage limits of $100,000/$300,000, property damage coverage limits of $50,000, and uninsured and underinsured motorist bodily injury limits of $15,000/$30,000. In April 2007, Sanchez signed GEICO’s “California Uninsured Motorist Bodily Injury (UM & UND) Coverage” form (the waiver form). The form explained that California law requires insurers to offer their policyholders uninsured motorist bodily injury coverage with limits equal to but not exceeding the policyholder’s bodily injury liability limits, up to a maximum of $30,000/$60,000. The form informed Sanchez, “You may select a higher limit of UM & UND, up to $100,000/$300,000. You may also reject the coverage entirely or select UM & UND coverage less than your [bodily injury liability] limits, but not less than the minimum limit of $15,000/$30,000.” The waiver form reflects that Sanchez selected the minimum limits. By signing the waiver form, Sanchez affirmed that he wanted uninsured and underinsured motorist bodily injury coverage limits of $15,000/$30,000, which were lower than what California law otherwise requires insurers…