VIII. Regulation of Multiple Coverages

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

VIII. Regulation of Multiple Coverages

Virtually every insurance policy contains provisions which attempt to regulate uninsured motorist coverage when the claimant is otherwise entitled to receive benefits for one accident from more than one source.²¹⁹ These extra sources include workers' compensation benefits, medical payments coverage, and liability coverages which may be found in the claimant's own policy or in some other policy. There may also be other sources of uninsured motorist coverage from other polices or endorsements. Such coverage terms, which are permitted by the Financial Responsibility Act,²²⁰ are found in several places in the uninsured motorist endorsement promulgated by the Insurance Department. Paragraph Five, Limits of Liability, states:

(d) Any amount payable under this insurance shall be reduced by all sums paid or payable under any Uninsured Motorist coverage applicable to the vehicle involved in the accident.
(e) Any amount payable under this insurance shall be reduced all sums paid or payable by or for anyone who is legally responsible, including all sums paid under the policy's liability insurance.²²¹
(f) Any amount paid under this insurance will reduce any amount an insured may be paid under the policy's liability insurance.

The Exclusions portion of the endorsement states: "This endorsement does not apply:...(e) so as inure directly or indirectly to the benefit of any workmen's compensation or disability benefits insurer or any person or organization qualifying as a self-insurer under any workmen's compensation or disability benefits insurer or any person or organization qualifying as a self-insurer under any workmen's compensation or disability benefits law or any similar law."

Lastly paragraph six, Other Insurance, states:

6. OTHER INSURANCE

With respect to bodily injury to an insured while occupying a motor vehicle not owned by the named insured, the hereunder shall apply only after the limits of any other similar insurance available to such insured and applicable to such motor vehicle as primary insurance is exhausted.

If none of the insured's motor vehicles is involved in the accident, coverage is available to the extent of such coverage on any one insured motor vehicle. Coverage on any other vehicles shall not be added to that coverage.

With respect to property damage, the insurance afforded under this endorsement shall apply only after the limits of any other valid and collectible insurance applicable to the damaged property have been exhausted.

Subject to the foregoing paragraphs, if the insured has other similar bodily injury insurance available to him and applicable to the accident, the company shall not be liable for a greater proportion of the loss to which this coverage applies than the limit of liability thereunder...