Search
 

Judicial Interpretations of ‘Owned-But-Not-Insured’

What circumstances can invalidate the owned-but-not-insured exclusion? Some recent verdicts may provide guidance.

By David Thamann | Updated on October 01, 2012
The standard personal-auto policy offers uninsured motorists (UM) coverage to insureds; of course, there are exclusions that limit the scope of the coverage.

One of the more troublesome exclusions is one that states the insurer will not provide UM coverage for bodily injury sustained “by an insured while occupying, or when struck by, any motor vehicle owned by that insured which is not insured for this coverage under this policy.”

This exclusion—better known as the “owned-but-not-insured” exclusion—seems straightforward enough. If an insured is driving to the store in his 2012 Chevy and is hit by an uninsured motorist, then that insured cannot claim UM coverage for his bodily injuries under his auto policy if he has not purchased that particular coverage for the 2012 Chevy. However, as with most insurance policy language, the owned-but-not-insured exclusion is subject to judicial interpretation which can render the exclusion void and useless.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.