Opinion ID: 1116146
Heading Depth: 1
Heading Rank: 15

Heading: did the trial court err in imposing the statutory minimum of $10,000 uninsured motorist coverage per vehicle instead of $25,000 uninsured motorist coverage per vehicle?

Text: Linda's second assignment of error on cross-appeal poses the following question: Where uninsured motorist coverage results by operation of law, should the imposed coverage be the statutory minimum or should it be the amount contracted in a previously cancelled policy? The trial court, in its January 24, 1988, order, answered as follows: This matter is before the court on defendant's motion for judgment notwithstanding the verdict or alternative for new trial. The only issue remaining for decision is whether the amount of uninsured motorist coverage provided by Travelers is $10,000 or $25,000. The insurance contract in question was written through the Assigned Risk Pool. The application purported to reject uninsured motorist coverage, but it was later disclosed that the insured had not authorized a rejection. It also appears that, purely as a matter of coincidence, the insurance company drawing the risk, Travelers, was the same company which previously carried the insured and which had rejected further coverage. In its previous policy the insured had uninsured motorist coverage at $25,000. The statutory minimum which applies as a matter of law where coverage is not rejected is $10,000. Plaintiff argues that the $25,000 coverage should apply because the insurer's agent rejected coverage in the face of a prior policy providing for this amount. Travelers argues that because it was in an assigned risk pool the acts of the broker cannot be attributed to it; that the unauthorized rejection was simply ineffective and that therefore the minimum coverage is in effect. The question is whether the plaintiff's employer effectively contracted for coverage greater than the statutory minimum. The record is silent. There is no evidence of any application except that signed by the broker which purported to reject all coverage. The parties agree that this rejection is ineffective. Plaintiff seeks a contract by implication at a former level but there is simply no evidence that either party intended such a contract. Accordingly, this court concludes that the level of uninsured motorist coverage available is in the amount of $10,000 for each covered vehicled [sic]. In reviewing a JNOV, we are required to review the evidence in a light most favorable to the appellant, disregarding any evidence of the appellee in conflict with the evidence favorable to the appellant. Waller v. Dixieland Food Stores, Inc., 492 So.2d 283 (Miss. 1986). The record reveals no evidence which indicates that either party intended to reinstate the policy limits which were contained in Steel's former policy with Travelers. The stipulation of facts reveals that the uninsured motorist benefits were written into the assigned risk policy through operation of law. There is absolutely no evidence to indicate that Steel and Travelers intended to impute the uninsured motorist limits from the cancelled policy into the assigned risk policy. Because coverage was written into the contract by operation of law, so was the amount of coverage. As no evidence supports Linda's position, we must affirm the trial judge's determination that the policy limits were $10,000 per vehicle.