Georgia's Supreme Court ruled 5-2 in favor of State Farm Mutual Auto Insurance Co., deciding that policyholders cannot engage in so-called "stacking" of uninsured motorist coverage from several commercial policies

Georgia's Supreme Court ruled 5-2 in favor of State Farm Mutual Auto Insurance Co., deciding that policyholders cannot engage in so-called "stacking" of uninsured motorist coverage from several commercial policies to maximize coverage of one accident.

The high court's ruling in State Farm Mutual Automobile Insurance Co. vs. Staton reversed a decision last year by the Georgia Court of Appeals that permitted the tactic.

State Farm spokesman Justin Tomczak said the company "applauded" the court ruling. "The possibility of commercial stacking would create virtually limitless exposure for insurers of large fleets and could lead to an increase in premiums for those policies," Tomszak said.

He said the company permits stacking of personal automobile policies, but not commercial policies.

The case arose following a collision on Jan. 9, 2003, in which now-state Sen. Cecil Staton suffered severe injuries, including a crushed ankle and lower leg. According to newspaper accounts, Staton's Chevrolet Suburban was struck head-on on a curve by another vehicle operated by an uninsured driver. Rescuers used the Jaws of Life to cut Staton from the wreckage. He underwent multiple surgeries and eventually regained his ability to walk.

State Farm wrote commercial auto coverage on each of three company vehicles for Staton's employer, including the one in which he had the accident. Staton was an officer and majority shareholder in the company, Atlanta-based Smyth & Helwys, a publishing corporation "in the Baptist tradition," according to its Web site.

Staton sued after State Farm declared it would only pay one $100,000 uninsured motorist claim, not three as Staton wanted. The insurer noted that the only named insured on the policies was the company. When the Floyd County trial court sided with State Farm, Staton appealed, claiming that he was a "named insured" on all three policies covering the company vehicles. The appellate court agreed, noting that a company cannot be a "named insured" because the policy defined a beneficiary as "a human being." The appeals court said this made the policy terms "ambiguous."

The state Supreme Court, however, said it "cannot accept this analysis." Writing for the majority, Justice Hugh P. Thompson asked, "Did the Court of Appeals err in concluding that Staton was entitled to stack the uninsured motorist coverage from his employer's insurance policies? ... The short answer is yes."

The ruling added, "We conclude that the term 'named insured' is not ambiguous."

Since the accident, Staton has urged the state legislature to improve Georgians' access to trauma centers. While showing photos of his crumpled vehicle during a hearing this past January, he implored lawmakers to earmark $60 million for the state to continue building a trauma network. His goal, he said, is to have a trauma center within one hour's drive from any point in the Peach State.

Tomszak said, "We sympathize with Sen. Staton'?s personal situation and applaud his public service to the community over his tenure in the State Senate."

Staton, a publisher and broadcaster, was first elected to the state Senate in 2004 and currently chairs its Science and Technology Committee. His district covers five counties in central Georgia, including the city of Macon.

State Farm Mutual currently has a Best's Financial Strength Rating of A++ (Superior).