Opinion ID: 1267245
Heading Depth: 1
Heading Rank: 1

Heading: C. sec. 33-801, subsec. (6) (c) provides in part as follows:

Text: Waiver of Immunity. In consideration of the premium    it shall be a part of the policy contract    that the insurance company shall not be entitled to the defense of governmental immunity of the insured. Immunity of the boards of trustees of school districts operating a transportation system, against liability damages, is hereby waived to the extent of the liability insurance carried   . The policy of liability insurance here involved was authorized by I.C., Title 33, chap. 8, aforesaid, covering the liability of respondent School District growing out of the operation of its school transportation system, recognized by the chapter to be a governmental function. The occurrence involved in this case did not grow out of the operation of respondent School District's transportation system; hence the liability coverage afforded by the policy cannot be extended to such occurrence. The parties did not intend that the policy encompass any liability coverage except as authorized by the legislative enactment; nor could the parties contract for any liability coverage in excess of that legislatively authorized. Ford v. City of Caldwell, 79 Idaho ___, 321 P.2d 589. Appellants rely on the case of Pigg v. Brockman, 79 Idaho ___, 314 P.2d 609. The case under consideration here is distinguishable from the Pigg case, since therein the decisive factor was the endorsement on the policy of the insurance company's agreement not to claim exemption from liability of the insured, the State, by reason of its sovereign immunity; such endorsement estopped the company from in anywise urging that defense. The policy herein referred to was written to cover respondent School District's tort liability growing out of the operation of its school transportation system. Its coverage was permitted by legislative waiver of the School District's governmental immunity to the amount of the policy coverage. The waiver, I.C. sec. 33-801, subsec. (6) (c) became a part of the contract of insurance and was read into it. Ford v. City of Caldwell, supra. The legislature by this waiver limited respondent School District's liability to that growing out of the operation of its school transportation system. Here, there existed no contract whereby the insurer agreed to insure against the liability claimed in this action, i.e., for an alleged wrongful death extraneous the School District's school transportation activities; nor was there any undertaking by the insurer, either in the policy or by endorsement, to insure respondent School District against the liability claimed herein, nor is there any sufficient allegation that any premium was charged or paid, for coverage against any such liability. The trial court properly sustained the general demurrer of respondent, Independent School District of Boise City, to appellants' complaint, followed by judgment of dismissal as to said respondent. The judgment of the trial court is affirmed. Costs to respondents. PORTER and TAYLOR, JJ., and NORRIS, District Judge, concur. McQUADE, J., concurs in the conclusions reached in the opinion.