Opinion ID: 2331458
Heading Depth: 2
Heading Rank: 3

Heading: Bell Atlantic's UIM Coverage

Text: ¶ 30. The remaining issue is the extent of Bell Atlantic's UIM coverage. Under today's decision if Bell Atlantic's UIM coverage is equal to or less than the tortfeasor's liability coverage of $500,000, Bonanno has recovered all he can from the company for the accident. As one might expect, the parties disagree about the extent of Bell Atlantic's UIM obligation; Bell Atlantic at one time claimed it provided UIM coverage only at the statutory amount, and Bonanno claims the company has no UIM limits because its self insurance coverage is unlimited and the company cannot prove it rejected the higher limits. ¶ 31. Resolution of this dispute requires a factual inquiry into the limits of Bell Atlantic's self-insurance plan because self insurance is a term with no specific legal meaning. 1 L. Russ & T. Segalla, Couch on Insurance 3d § 10-1, at 10-2 (1997). Most often, the term encompasses situations where a large corporation, governmental entity, or charitable organization chooses to forego purchase of a commercial insurance policy in favor of managing its potential risks through the establishment of a reserve fund or purchase of a bond. Id.; see also 1 E. Holmes & M. Rhodes, Holmes's Appleman on Insurance 2d § 2.18, at 326 (1996). In some cases, the self-insured entity purchases a commercial insurance policy with a high deductible so that it meets losses up to that deductible through the entity's own assets. 1 L. Russ & T. Segalla, supra, at 10-3; 1 E. Holmes & M. Rhodes, supra, at 326; M. Flory & A. Walsh, Know Thy Self-Insurance (And Thy Primary and Excess Insurance), 36 Tort & Ins. L.J. 1005, 1007 (2001); see, e.g., McClain v. Begley, 465 N.W.2d 680, 681 (Minn.1991) (company's self-insurance plan entailed a self-insurance reserve of $500,000 before excess insurance policy provided by commercial insurer for an additional $2,500,000 was triggered). ¶ 32. In this case, the record shows that Bell Atlantic purchased an excess liability policy with coverage for its automobiles. In 1999, the policy had a self-insurance retention of $2,000,000, which meant that the company was self insured up to $2,000,000 before the commercial policy was triggered. It is unclear from the record whether the self-insurance retention amount at the time of Bonanno's accident was also $2,000,000, or some other amount. With respect to coverage for UIM, the record also contains conflicting evidence. Deposition testimony from company officials indicated that under Bell Atlantic's self-insurance plan, the company would pay UIM benefits, but only up to the amounts required by statute. Later supplemental interrogatory responses indicated that the company's self-insurance plan in Vermont did not include benefits for UIM because company attorneys advised that Vermont did not require self insurers to provide UIM coverage. Bonanno claims that Bell Atlantic cannot prove that it selected the statutory limits for UIM, rather than providing coverage equal to its general liability limits. See Lecours v. Nationwide Mut. Ins. Co., 163 Vt. 157, 159, 657 A.2d 177, 179 (1995) (although insurer has burden to prove the insured rejected higher UM limits, the rejection need not be in writing). ¶ 33. The trial court did not determine the extent of Bell Atlantic's liability, if any, because it granted the company summary judgment on the applicability of the workers' compensation exclusivity bar. Like the trial court, we review the record to determine if a genuine dispute over material facts exists and any party is entitled to judgment as a matter of law. See V.R.C.P. 56(c)(3) (summary judgment proper when no genuine material facts are in dispute and any party is entitled to judgment as a matter of law); Mellin v. Flood Brook Union Sch. Dist., 173 Vt. 202, 211, 790 A.2d 408, 417 (2001) (Court uses same summary judgment standard on appeal as trial court used below). It is apparent from the conflicting factual record before us now that summary judgment on Bell Atlantic's self-insurance limits is not appropriate. We therefore remand the matter back to the trial court for final determination In Supreme Court Docket No. 2000-053. we answer the certified question in the negative. In Supreme Court Docket No. 2000-410, we affirm the court's judgment for appellee American Protection Insurance, and we reverse the judgment in favor of appellee Bell Atlantic Communications, Inc. and remand for further proceedings consistent with this opinion.