N.J. High Court Rules Uninsured Auto Coverage Does Not Apply
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February 24, 2009 Tuesday 12:28 PM EST
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N.J. High Court Rules Uninsured Auto Coverage Does Not Apply to Drive-By Shootings
Chad Hemenway
TRENTON, N.J.
Mercury Insurance Group is not responsible for paying medical expenses for a woman injured in a drive-by shooting in New Jersey in 2005, the state Supreme Court has ruled.
In a 4-3 ruling written by Justice Roberto Rivera-Soto, the court said the injuries suffered by the woman, Camie Livsey, were the result of an accident that did not involve the operation of an uninsured vehicle; therefore, the woman's uninsured motorist coverage from Mercury (NYSE: MCY) could not be used to pay her medical bills.
"In the end, it is the limited purpose of UM coverage -- to provide insurance benefits to a covered person where the automobile that causes the harm is uninsured -- that drives our conclusion that, in these circumstances, (Mercury) cannot be called on to respond to UM coverage to (Livsey's) benefit," Rivera-Soto wrote.
The Property Casualty Insurers Association of America, the Insurance Council of New Jersey, the American Insurance Association and the National Association of Mutual Insurance Companies filed a brief in support of Mercury when an appellate court earlier ruled in favor of Livsey. A trial court had ruled in Mercury's favor.
"The Supreme Court's ruling places appropriate limits on scope of uninsured motorist coverage," said Richard Stokes, regional manager and counsel for PCI, in a statement. "The expansion of coverage beyond what is allowed for under the contract would be harmful for consumers."
The trade groups said rates for all drivers would have gone up if the appellate ruling stood.
The majority of the judges looked to case law in making their determinations. Another case that had involved similar circumstances came to a conclusion that a gun fired from a moving vehicle with knowledge or participation from the car's driver "cannot be considered to have risen out of the use of the driver's vehicle."
"Uninsured motorist coverage should be limited to cases where the injury is closely connected to the motor vehicle," said Stokes. "In this case a gun and not a car produced the injury."
About four year ago, Livsey made a purchase at a grocery store in Irvington, N.J. and was returning to her car when she was shot, court documents show. Witnesses said they saw a vehicle fleeing the scene but authorities never determined who fired the shot or whether it came from the car witnesses saw. According to court records, Livsey received $250,000 under her personal injury protection coverage. Her bills were more than $600,000.
Mercury Insurance Co., a member of Mercury General Group, currently has a Best's Financial Strength Rating of A+ (Superior).
In 2007, the top writers of private passenger auto insurance in New Jersey, were: Allstate Insurance Group, with 15.2% of market share; Berkshire Hathaway Insurance Group, 13.5%; NJM Insurance Group, 13.4%; Palisades Group, 8.9%; and State Farm Group, 8.7%, according to the A.M. Best Co. state/line data based on direct premiums written.
(By Chad Hemenway, associate editor, BestWeek: Chad.Hemenway@ambest.com)
February 25, 2009
Copyright © 2009 LexisNexis, a division of Reed Elsevier Inc. All Rights Reserved.
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February 24, 2009 Tuesday 12:28 PM EST
499 words
N.J. High Court Rules Uninsured Auto Coverage Does Not Apply to Drive-By Shootings
Chad Hemenway
TRENTON, N.J.
Mercury Insurance Group is not responsible for paying medical expenses for a woman injured in a drive-by shooting in New Jersey in 2005, the state Supreme Court has ruled.
In a 4-3 ruling written by Justice Roberto Rivera-Soto, the court said the injuries suffered by the woman, Camie Livsey, were the result of an accident that did not involve the operation of an uninsured vehicle; therefore, the woman's uninsured motorist coverage from Mercury (NYSE: MCY) could not be used to pay her medical bills.
"In the end, it is the limited purpose of UM coverage -- to provide insurance benefits to a covered person where the automobile that causes the harm is uninsured -- that drives our conclusion that, in these circumstances, (Mercury) cannot be called on to respond to UM coverage to (Livsey's) benefit," Rivera-Soto wrote.
The Property Casualty Insurers Association of America, the Insurance Council of New Jersey, the American Insurance Association and the National Association of Mutual Insurance Companies filed a brief in support of Mercury when an appellate court earlier ruled in favor of Livsey. A trial court had ruled in Mercury's favor.
"The Supreme Court's ruling places appropriate limits on scope of uninsured motorist coverage," said Richard Stokes, regional manager and counsel for PCI, in a statement. "The expansion of coverage beyond what is allowed for under the contract would be harmful for consumers."
The trade groups said rates for all drivers would have gone up if the appellate ruling stood.
The majority of the judges looked to case law in making their determinations. Another case that had involved similar circumstances came to a conclusion that a gun fired from a moving vehicle with knowledge or participation from the car's driver "cannot be considered to have risen out of the use of the driver's vehicle."
"Uninsured motorist coverage should be limited to cases where the injury is closely connected to the motor vehicle," said Stokes. "In this case a gun and not a car produced the injury."
About four year ago, Livsey made a purchase at a grocery store in Irvington, N.J. and was returning to her car when she was shot, court documents show. Witnesses said they saw a vehicle fleeing the scene but authorities never determined who fired the shot or whether it came from the car witnesses saw. According to court records, Livsey received $250,000 under her personal injury protection coverage. Her bills were more than $600,000.
Mercury Insurance Co., a member of Mercury General Group, currently has a Best's Financial Strength Rating of A+ (Superior).
In 2007, the top writers of private passenger auto insurance in New Jersey, were: Allstate Insurance Group, with 15.2% of market share; Berkshire Hathaway Insurance Group, 13.5%; NJM Insurance Group, 13.4%; Palisades Group, 8.9%; and State Farm Group, 8.7%, according to the A.M. Best Co. state/line data based on direct premiums written.
(By Chad Hemenway, associate editor, BestWeek: Chad.Hemenway@ambest.com)
February 25, 2009
Copyright © 2009 LexisNexis, a division of Reed Elsevier Inc. All Rights Reserved.
Terms and Conditions Privacy Policy
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