2006 Nebraska Revised Statutes - § 44-6413 — Uninsured and underinsured motorist coverages; exceptions; exclusions; requirements; rules and regulations.

Section 44-6413
Uninsured and underinsured motorist coverages; exceptions; exclusions; requirements; rules and regulations.

(1) The uninsured and underinsured motorist coverages provided in the Uninsured and Underinsured Motorist Insurance Coverage Act shall not apply to:

(a) Bodily injury, sickness, disease, or death of the insured with respect to which the insured or his or her representative makes, without the written consent of the insurer, any settlement with or obtains any judgment against any person who may be legally liable for any injuries if such settlement adversely affects the rights of the insurer, except that this subdivision shall not apply to underinsured motorist coverage when the insured has given notice to the insurer, in compliance with subsection (2) of section 44-6412, and the insurer has failed to make the required payment to protect its right of subrogation;

(b) Bodily injury, sickness, disease, or death of an insured while occupying a motor vehicle owned by, but not insured by, the named insured or a spouse or relative residing with the named insured;

(c) Bodily injury, sickness, disease, or death of an insured while occupying an owned motor vehicle which is used as a public or livery conveyance and which is not insured as such;

(d) Bodily injury, sickness, disease, or death of an insured through being struck by a vehicle owned by the named insured or a spouse or relative residing with the named insured; and

(e) Bodily injury, sickness, disease, or death of the insured with respect to which the applicable statute of limitations has expired on the insured's claim against the uninsured or underinsured motorist.

(2) Insurers providing motor vehicle liability insurance coverage on an excess or umbrella basis or incidental to some other basic coverage shall not be required to offer, provide, or make available coverage conforming to the Uninsured and Underinsured Motorist Insurance Coverage Act.

(3) An insurer may make underinsured motorist coverage a part of uninsured motorist coverage.

(4) Nothing in the Uninsured and Underinsured Motorist Insurance Coverage Act shall be construed to prevent an insurer from offering, making available, or providing coverage under terms and conditions more favorable to its insured or in limits higher than are required by the act.

(5) The Director of Insurance shall adopt and promulgate rules and regulations as are necessary to provide that the language relating to coverages described in the Uninsured and Underinsured Motorist Insurance Coverage Act is not unfair, inequitable, misleading, or deceptive and does not encourage misrepresentation of the coverage.

Source:

Laws 1986, LB 573, § 12

R.S.1943, (1988), § 60-582

Laws 1994, LB 1074, § 13

Annotations:

Subsection (1)(e) of this section operates as a bar to an action for uninsured motorist benefits where the insured claimant does not commence an action against the tort-feasor within the applicable limitations period. Where the injured party claiming underinsured motorist benefits commences a timely claim against the tort-feasor, the 5-year statute of limitations for actions on written contracts set forth in section 25-205 applies, not subsection (1)(e) of this section. Snyder v. Case and EMCASCO Ins. Co., 259 Neb. 621, 611 N.W.2d 409 (2000).

This section is a specific statute addressing the time period within which an uninsured or underinsured motorist coverage claim must be brought against the uninsured or underinsured motorist coverage insurer, and it controls over section 25-205 (5-year statute of limitations) in situations where the applicable statute of limitations has expired on the insured's underlying claim against the uninsured or underinsured motorist. When the statute of limitations has not expired on the insured's underlying claim, section 25-205, which provides for a 5-year statute of limitations on written contracts, is the governing statute of limitations and this section is inapplicable. Schrader v. Farmers Mut. Ins. Co., 259 Neb. 87, 608 N.W.2d 194 (2000).

Subsection (1)(e) of this section operates as a statute of limitations by creating a specific limitation period for actions against insurers for uninsured motorist benefits. Subsection (1)(e) of this section limits liability of insurer to period of time during which insured still has viable claim against uninsured motorist. Kratochvil v. Motor Club Ins. Assn., 255 Neb. 977, 588 N.W.2d 565 (1999).

The term "settlement" as used in subsection (1)(a) of this section means that the parties to a controversy must come to an agreement that is a final resolution of the controversy. Horace Mann Cos. v. Pinaire, 248 Neb. 640, 538 N.W.2d 168 (1995).

Insurers providing excess or umbrella coverage need not provide uninsured motorist coverage, and insurers may make underinsured motorist coverage part of uninsured motorist coverage. American States Ins. Co. v. Farm Bureau Ins. Co., 7 Neb. App. 507, 583 N.W.2d 358 (1998).

~Reissue Revised Statutes of Nebraska