Opinion ID: 1107944
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Heading: the purpose of uninsured motorist coverage

Text: Under the terms of R.S. 22:1406(D), automobile liability insurance delivered or issued for delivery in Louisiana and arising out of ownership, maintenance, or use of a motor vehicle registered in Louisiana and designed for use on public highways must provide uninsured/underinsured motorist (UM) coverage equal to the liability provided for bodily injury. The purpose of this statute is to protect insureds who become the innocent victims of uninsured/underinsured motorists' negligence. Southern American Insurance Co. v. Dobson, 441 So.2d 1185 (La.1983); Hoefly v. Government Employees Insurance Co., 418 So.2d 575 (La.1982); Booth v. Fireman's Fund Insurance Co., 253 La. 521, 218 So.2d 580 (1968). Uninsured motorist coverage is intended to protect the insured at all times against the generalized risk of damages at the hands of uninsured motorists. Block v. Reliance Insurance Co., 433 So.2d 1040 (La.1983). The statute as amended indicates that the legislature intended to provide a full recovery for innocent accident victims by making their UM coverage the primary coverage when the tortfeasors are uninsured. Bond v. Commercial Union Assurance Co., 407 So.2d 401 (La.1981). UM coverage, however, is not mandatory; the insured can waive the coverage or select lower amounts. R.S. 22:1406(D)(1) (a)(i). A rare limitation of UM liability is permitted in policies covering school buses. R.S. 22:1406(D)(1)(a)(iv). Another restricts an insurer's UM liability in cases in which the tortfeasor's insurer is or becomes insolvent. R.S. 22:1406(D)(3). Except for these limited restrictions, the requirement for uninsured motorist coverage applies to any liability insurance covering any accident which occurs in this state and involves a resident of this state. R.S. 22:1406(D) (1)(a)(iii). The policies at issue in this case each contain a provision that excludes UM coverage on a vehicle owned or operated by a self-insurer within the meaning of any motor vehicle financial responsibility law, motor carrier law, or any similar law. 1966 Standard Form, Part V: Additional Definitions (uninsured highway vehicles). Had the legislature intended to allow insurers to utilize such an exclusion to limit their UM liability with respect to self-insured vehicles, it could have so provided. [1] This court has already determined that an insurance company may not impose coverage limitations that are more restrictive than the coverage implicitly required by a state uninsured motorist statute. [2] Breaux v. Government Employees Insurance Co., 369 So.2d 1335 (La.1979). Since the exclusion of self-insured vehicles from the definition of uninsured motor vehicles provides less coverage than that contemplated by the statute, the exclusion is invalid. [3]