Continental Ins. Co. v. Murphy

Summary

The Nevada Supreme Court holds that a non-occupancy exclusion in an automobile insurance policy is void as against public policy to the extent it precludes the minimum uninsured or underinsured motorist benefits required by Nevada law. The exclusion remains enforceable above those statutory minimum limits, and the court affirms the district court’s declaratory judgment.

Holdings

1. The owner's-policy/operator's-policy distinction need not be decided because NRS 485.3091 applies exclusively to liability insurance, not UM/UIM coverage.
2. A non-occupancy exclusion in an automobile policy is void as against public policy to the extent it precludes recovery of the minimum UM/UIM benefits required by Nevada law.
3. The non-occupancy exclusion is enforceable to the extent it restricts coverage above Nevada's mandatory minimum UM/UIM limits.

Questions Presented

1. Whether Nevada's UM/UIM statutory scheme permits an automobile insurer to enforce a non-occupancy exclusion against an insured injured while occupying a vehicle other than the covered automobile.
2. Whether the exclusion is void in its entirety or only to the extent that it precludes the minimum UM/UIM coverage required by Nevada law.
3. Whether the policy's classification as an owner's or operator's policy under NRS 485.3091 affects the UM/UIM coverage dispute.

Disposition

affirmed