Opinion ID: 1864717
Heading Depth: 2
Heading Rank: 2

Heading: the maximum limit of uim for self-insurers absent a request for additional insurance is $100,000.

Text: The trial court held U.S. West was liable for UIM coverage up to a limit of $100,000. Defendants Ligtenberg, Bergstresser and Bang, citing McClain v. Begley as authority, urge that U.S. West's liability for uninsured coverage is the total amount of the company's assets rather than the statutory limit of SDCL 58-11-9. [5] McClain, 465 N.W.2d at 682. They claim SDCL 32-35-91, which allows a certificate of self-insurance to be issued if the Department of Commerce is satisfied that an entity is possessed and will continue to be possessed of the ability to pay judgments obtained against such person, should be interpreted to mean U.S. West pledged its entire worth as the limit of its liability. McClain is inapplicable to these facts. In McClain, the self-insurer stated in its application that it had purchased $2,500,000 worth of insurance coverage in excess of the $500,000 [self-insured retention]. Thus, it represented that it was self-insured for $500,000. Id. at 681. U.S. West made no such representation in its application for self-insurance. Further, Defendants' argument ignores SDCL 32-35-75 which provides: Any policy which grants the coverage required for a motor vehicle liability policy may also grant any lawful coverage in addition to the coverage specified for a motor vehicle liability policy and such excess or additional coverage shall not be subject to the provisions of this chapter. With respect to a policy which grants such excess or additional coverage the term motor vehicle liability policy shall apply only to that part of the coverage which is required by § 32-35-70 or 32-35-71 (emphasis added). Therefore, the statutory maximum UIM $100,000 required by SDCL 58-11-9 is not affected by an application for self-insurance under SDCL ch. 32-35. See also Krieg v. State, 183 A.D.2d 1025, 583 N.Y.S.2d 621 (1992) (finding self-insurer's liability was co-extensive with other insureds and did not exceed statutory maximum); Dale v. City of Newport News, 243 Va. 48, 412 S.E.2d 701 (1992) (refusing to retroactively apply statutory UIM cap to limit liability of self-insurer with no established limits). U.S. West's application for a certificate of self-insurance did not operate as a request to raise the amount of UIM coverage. We agree with the trial court and hold that the statutory limit of U.S. West's liability for UIM is $100,000.