Section 6.8 Insurance Carrier Denies Liability or Is Insolvent

• Library: Insurance Practice 2015

In some cases, there may be liability insurance on the vehicle, but the insurer denies liability or is insolvent.

Section 379.203.2, RSMo 2000, provides that “uninsured motor vehicle” includes any insured vehicle when the insurer is unable to make payment within its legal liability because of insolvency. This insolvency protection applies to accidents occurring during the policy period and when the insurer becomes insolvent within two years after the accident.

The “household exclusion” provision of an automobile policy provides that there is no liability coverage for any insured or any member of an insured’s family residing in the insured’s household. In Harrison v. MFA Mut. Ins. Co., 607 S.W.2d 137 (Mo. banc 1980), a husband...