Public policy / insurance policy exclusions
Am I right that an insurance policy exclusion that is against public policy is not valid and will not be enforced by the courts?
Answer: I think you are thinking of a line of cases like McElmurry v. Garbow, 2005 OK CIV APP 38, 116 P.3d 198, 200-201: “Even in the absence of a violation of a law's express provision, an exclusion may nonetheless be invalid for nonconformity to the policy of the law. The principal purpose of law-mandated liability insurance is the protection of the public from the financial hardship which may result from the use of automobiles by financially irresponsible persons. To effectuate this policy, any vehicle operating on the roads of this state must be secured against liability to innocent victims in the event harm occurs from its negligent operation. This clearly articulated public policy overrides contrary private agreements that restrict coverage where the contractual strictures do not comport with the purpose of the Act.” Others include: Ball v. Wilshire Ins. Co., 2009 OK 38, 221 P.3d 717, 722 (invalidating exclusions and citing numerous cases.
Posted on Thu, March 10, 2011
by Sharon Coleman filed under