Continental Western Insurance Company v. Conn, 262 Neb. 147

Summary

The Nebraska Supreme Court held that a school bus owned by Omaha Public Schools was not an "underinsured motor vehicle" under the applicable insurance policy and Nebraska statutes. Because government-owned vehicles were excluded from the statutory and policy definitions, the insureds could not recover additional underinsured motorist benefits after receiving the $1 million statutory maximum from the political subdivision. The court affirmed the district court's declaratory judgment for Continental Western and declined to consider the constitutional challenge because it was not properly raised below.

Holdings

1. The OPS bus was not an underinsured motor vehicle because both the insurance policy and Neb. Rev. Stat. § 44-6407(4) excluded vehicles owned by a government, political subdivision, or agency from that definition.
2. The policy exclusion for government-owned vehicles was not void as against public policy because it mirrored and was authorized by Nebraska's statutory exclusion.
3. The Conns could not recover an additional $100,000 in underinsured motorist benefits after receiving the $1 million maximum recovery from OPS.
4. The court did not consider the Conns' constitutional challenge because it was not properly raised before the district court.

Questions Presented

1. Whether the OPS bus qualified as an underinsured motor vehicle under the Continental Western policy and Nebraska's Uninsured and Underinsured Motorist Insurance Coverage Act.
2. Whether the policy exclusion for government-owned vehicles was void as against public policy.
3. Whether the statutory exclusion for government-owned vehicles was unconstitutional.
4. Whether the Conns could recover underinsured motorist benefits in addition to the $1 million maximum recovery permitted against OPS.

Disposition

affirmed