ILNews

COA: Government vehicle exclusion is void

Back to TopE-mailPrintBookmark and Share

The Indiana Court of Appeals concluded today in a matter of first impression that the government vehicle exclusion in underinsured motorist policies is void as against public policy.

The issue arose in Cincinnati Insurance Co. v. James and Jan Trosky, et al., No. 29A02-0902-CV-148, in which Cincinnati argued Indiana substantive law should apply in determining whether government vehicles could be excluded from the definition of underinsured motor vehicle in the policies of the parties involved in the litigation. Courtland Brown, Kyle Trosky, and Kaitlin Culpepper were driving home from Florida in a car owned by Brown's parents. Culpepper was a permissive driver at the time of the accident, in which their car collided with one owned by the Florida Highway Patrol. Trosky was killed and Culpepper was injured.

The families sought excess underinsured motorist coverage from Cincinnati, which provided excess UIM coverage to the Browns; and from State Farm Fire, which provided excess UIM coverage to the Troskys. The trial court applied Florida substantive law to determine the exclusion of government vehicles was void as against public policy. The court granted summary judgment for the Troskys in their motion for summary judgment against Cincinnati and State Farm Fire, and granted Culpepper's motion for partial-summary judgment against Cincinnati.

The appellate court agreed with Cincinnati that Indiana substantive law should have been applied, which hasn't addressed this question. The Court of Appeals ultimately agreed with cases from other jurisdictions that held government vehicle exclusions from the definition of underinsured motorist in insurance polices are void because they are against public policy.

"Our UM/UIM statutes mandate minimum coverage, and the insurance policy exclusions for government-owned vehicles deny coverage, where it is required by statute," wrote Judge Ezra Friedlander. "These exclusions conflict with the express language of the statute by narrowing the definition of underinsured motor vehicles, and are void as against public policy."

The appellate court also agreed with cases from other jurisdictions that held the sovereign immunity defense isn't available to UIM carriers who argue that once the statutory cap has been paid by the governmental unit, the insured is no longer "legally entitled to recover."

The FHP vehicle was underinsured, and the trial court correctly determined Culpepper was entitled to recover from the Cincinnati personal liability umbrella policy, wrote the judge. The appellate court also affirmed the decision that the Troskys could recover under the Cincinnati, State Farm Fire, and their State Farm Auto policy's UIM provisions for Kyle's wrongful death; and that the Troskys should first recover under Kyle's auto policy, and then receive pro rata coverage from Cincinnati and State Farm Fire, wrote Judge Friedlander.

ADVERTISEMENT

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. First comment on this thread is a fitting final comment on this thread, as that the MCBA never answered Duncan's fine question, and now even Eric Holder agrees that the MCBA was in material error as to the facts: "I don't get it" from Duncan December 1, 2014 5:10 PM "The Grand Jury met for 25 days and heard 70 hours of testimony according to this article and they made a decision that no crime occurred. On what basis does the MCBA conclude that their decision was "unjust"? What special knowledge or evidence does the MCBA have that the Grand Jury hearing this matter was unaware of? The system that we as lawyers are sworn to uphold made a decision that there was insufficient proof that officer committed a crime. How can any of us say we know better what was right than the jury that actually heard all of the the evidence in this case."

  2. wow is this a bunch of bs! i know the facts!

  3. MCBA .... time for a new release about your entire membership (or is it just the alter ego) being "saddened and disappointed" in the failure to lynch a police officer protecting himself in the line of duty. But this time against Eric Holder and the Federal Bureau of Investigation: "WASHINGTON — Justice Department lawyers will recommend that no civil rights charges be brought against the police officer who fatally shot an unarmed teenager in Ferguson, Mo., after an F.B.I. investigation found no evidence to support charges, law enforcement officials said Wednesday." http://www.nytimes.com/2015/01/22/us/justice-department-ferguson-civil-rights-darren-wilson.html?ref=us&_r=0

  4. Dr wail asfour lives 3 hours from the hospital,where if he gets an emergency at least he needs three hours,while even if he is on call he should be in a location where it gives him max 10 minutes to be beside the patient,they get paid double on their on call days ,where look how they handle it,so if the death of the patient occurs on weekend and these doctors still repeat same pattern such issue should be raised,they should be closer to the patient.on other hand if all the death occured on the absence of the Dr and the nurses handle it,the nurses should get trained how to function appearntly they not that good,if the Dr lives 3 hours far from the hospital on his call days he should sleep in the hospital

  5. It's a capital offense...one for you Latin scholars..

ADVERTISEMENT