School bus passenger injured in collision brought action against manager of school board’s self-insurance risk pool, seeking a declaratory judgment regarding the scope of coverage for board’s uninsured motorist (UM) and underinsured motorist (UIM) coverage.
The Richmond Circuit Court granted summary judgment to passenger. Manager was awarded an appeal.
The Supreme Court held that board’s UM/UIM coverage was not capped at $50,000.
School board’s uninsured motorist (UM) and underinsured motorist (UIM) coverage was not capped at $50,000, but rather coverage was for $1 million, as specified in contract entered into with manager of self-insurance risk pool; there was no statutory cap on UM/UIM coverage under remedial construction afforded to statutes, board had freedom to contract for more coverage than $50,000 floor, and insurance purchased from risk pool was valid and collectible.