United Services Automobile Association v. Pickens

Summary

The South Carolina Supreme Court held that a named-driver exclusion authorized by South Carolina Code section 38-77-340 may exclude uninsured motorist coverage, as well as other forms of coverage, while the designated driver operates the vehicle. Because Belinda Pickens had signed an exclusion naming Kevin Simms and Simms was operating the vehicle when she was injured, the court affirmed the denial of her uninsured motorist claim.

Holdings

1. When the insured agrees to exclude coverage while a named driver operates the vehicle, the exclusion extends to all forms of coverage under the policy, including uninsured motorist coverage.
2. A named driver exclusion authorized by section 38-77-340 may exclude uninsured motorist coverage notwithstanding section 38-77-150's requirement that automobile policies contain uninsured motorist coverage.
3. Pickens's argument that the policy language itself applied only to liability coverage was unpreserved because the circuit court did not rule on it and Pickens did not file a Rule 59(e) motion.

Questions Presented

1. Whether South Carolina Code section 38-77-340 permits a named driver exclusion to preclude uninsured motorist coverage for an insured passenger injured while the excluded driver was operating the vehicle.
2. Whether the exclusion violates section 38-77-150's requirement that automobile insurance policies contain uninsured motorist coverage.

Disposition

affirmed