VI. Policy Exclusions

• Library: The Law of Automobile Insurance in SC (SCBar) (2015 Ed.)

VI. Policy Exclusions

The uninsured motorist endorsement found in the claimant's policy often contains the same exclusions that are found in the liability portion. "There is no provision in the Uninsured Motorist Statutes which, either expressly or by implication, requires that the uninsured motorist endorsement must insure against any and all liability,"¹⁷⁷ and a policy provision which does not controvert the uninsured motorist statutes may be upheld. On the other hand:

[t]he public policy declared by our uninsured motorist statute imposes an obligation on insurers to provide protection to their insureds against loss caused by wrongful conduct of an uninsured motorist, and any limiting language in an insurance contract which had the effect of providing less protection than made obligatory by the statutes is contrary to public policy and is of no force and effect.¹⁷⁸

"Our Supreme Court has adopted a policy of construing motor vehicle insurance statutes strictly against insurers."¹⁷⁹ Policy provisions inconsistent with the uninsured motorist statutes are void and the relevant sections of the Act prevail as much as if expressly incorporated in the policy.¹⁸⁰ In Bogan v. Bome Insurance Co.,¹⁸¹ the supreme court held that a policy provision excluding uninsured motorist coverage to an insured who was injured while occupying an uninsured vehicle owned by the named insured or a member of the same household was invalid.¹⁸² Similarly, in Nationwide Mutual Insurance Co. v. Erwood, the supreme court invalidated a provision within a policy that had the effect of eliminating UIM coverage for a wife...