As the Appellate Division in this case aptly observed, the statute "specifically and unambiguously requires an insurer to provide coverage for such sums . . . which the insured would be able to recover from the operator of an uninsured automobile whether the insured was walking, standing, running, riding a motorcycle or occupying an uninsured motor vehicle." Fernandez v. Selected Risks Ins. Co., 163 N.J. Super. 270, 275 (App.Div. 1978). Where coverage has been accorded to insureds by the insurance contract under the UM endorsement, the owned-but-uninsured exclusion cannot be invoked to avoid payment.
See State Farm Automobile Insurance Co. v. Reaves, 292 Ala. 218, 292 So.2d 95 (1974); Mullis v. State Farm Mutual Automobile Ins. Co., 252 So.2d 229 (Fla. 1971); Kau v. State Farm Mut. Auto. Ins. Co., 58 Haw. 49, 564 P.2d 443 (1977); Nygaard v. State Farm Mutual Automobile Ins. Co., 301 Minn. 10, 221 N.W.2d 151 (1974); Lowery v. State Farm Mutual Automobile Ins. Co., 285 So.2d 767 (Miss. 1973); Shepherd v. American States Ins. Co., 671 S.W.2d 777 (Mo. 1984); Jacobson v. Implement Dealers Mut. Ins. Co., 196 Mont. 542, 640 P.2d 908 (1982); State Farm Mutual Automobile Ins. Co. v. Hinkel, 87 Nev. 478, 488 P.2d 1151 (1971); Fernandez v. Selected Risks Ins. Co., 163 N.J.Super. 270, 394 A.2d 877 (1978); Chavez v. State Farm Mutual Automobile Ins. Co., 87 N.M. 327, 533 P.2d 100 (1975); Bankes v. State Farm Mutual Automobile Ins. Co., 216 Pa. Super. 162, 264 A.2d 197 (1970); Hogan v. Home Insurance Co., 260 S.C. 157, 194 S.E.2d 890 (1973); Federated American Ins. Co. v. Raynes, 88 Wn.2d 439, 563 P.2d 815 (1977). A smaller number of courts have reached a contrary result.
Petition for certification granted. (See 163 N.J. Super. 270)
Cross-Petition for certification denied. (See 163 N.J. Super. 270)
1973); Shepherd v. American States Insurance Co., 671 S.W.2d 777 (Mo. 1984), overruling, Barton v. American Family Mutual Insurance Co., 485 S.W.2d 628 (Mo.App. 1972); Jacobson v. Implement Dealers Mutual Insurance Co., 640 P.2d 908 (Mont. 1982); State Farm Mutual Automobile Insurance Co. v. Hinkel, 87 Nev. 478, 488 P.2d 1151 (1971); Fernandez v. Selected Risks Insurance Co., 163 N.J. Super. 270, 394 A.2d 877 (App.Div. 1978); Chavez v. State Farm Mutual Auto Insurance Co., 87 N.M. 327, 533 P.2d 100 (1975); Ady v. West American Insurance Co., 69 Ohio St.2d 593, 433 N.E.2d 547 (1981), overruling, Orris v. Claudio, 63 Ohio St.2d 140, 406 N.E.2d 1381 (1980); Cothren v. Emcasco Insurance Co., 555 P.2d 1037 (Okla. 1976); Bankes v. State Farm Mutual Automobile Insurance Co., 216 Pa. Super. 162, 264 A.2d 197 (1970); Hogan v. Home Insurance Co., 260 S.C. 157, 194 S.E.2d 890 (1973); Allstate Insurance Co. v. Meeks, 207 Va. 897, 153 S.E.2d 222 (1967); Federated American Insurance Co. v. Raynes, 88 Wn.2d 439, 563 P.2d 815 (1977); Bell v. State Farm Mutual Automobile Insurance Co., 157 W. Va. 623, 207 S.E.2d 147 (1974).
The authors cite two cases in support of their proposition, Beek v. Ohio Cas. Ins. Co., 135 N.J. Super. 1 (App.Div. 1975), aff'd o.b., 73 N.J. 185 (1977) and Fernandez v. Selected Risks Ins. Co., 163 N.J. Super. 270 (App.Div. 1978),aff'd, 82 N.J. 236 (1980). In Beek, supra, the plaintiff insured was operating a motorcycle owned by him when he was struck and injured by an uninsured motorist.
Once a named insured has elected to purchase underinsured motorist coverage, the carrier may not cut back the statutory scope of such coverage by excluding from the policy definition of an underinsured motor vehicle "any vehicle . . . [o]wned by . . . any family member" of the named insured. See Motor Club of America Ins. Co. v. Phillips, 66 N.J. 277, 292-293 (1974); Fernandez v. Selected Risks Insurance Company, 163 N.J. Super. 270, 273-274 (App.Div. 1978). The cited cases prohibit carriers from cutting back the scope of uninsured motorist coverage as mandated and defined by the statute.
Our courts have consistently invalidated insurance policy provisions that attempt to reduce or limit uninsured motorist recoveries by monies received under bodily insurance policy provisions. Fellippello, supra; Fernandez v. Selected Risks Ins. Co., 163 N.J. Super. 270 (App.Div. 1978), certif. granted, 79 N.J. 488 (1979), cross-petition for certif.
An interpretation of the policy issued by plaintiff within the framework of the legislation just mentioned requires that any provision which purports to be more restrictive be judicially modified to conform to the statutory standard. Beck v. Ohio Cas. Ins. Co., 73 N.J. 185 (1977); Selected Ins. Co. v. Zullo, 48 N.J. 362 (1966); Fernandez v. Selected Risks Ins. Co., 163 N.J. Super. 270, aff'd 82 N.J. 236 (1980); Willis v. Security Ins. Group, 104 N.J. Super. 410 (Ch.Div. 1968), aff'd o.b. 53 N.J. 260 (1969). When appropriate, the courts of this State have not hesitated to strike provisions of automobile liability policies which do not conform to relevant statutory mandates, including those requiring uninsured motorist coverage.
1 (App.Div. 1975), aff'd o.b. 73 N.J. 185 (1977), and we have consistently invalidated insurance policy provisions which attempt to reduce or limit uninsured motorist recoveries by monies received under bodily injury insurance policy provisions. Fernandez v. Selected Risks Ins. Co., 163 N.J. Super. 270 (App.Div. 1978), certif. granted 79 N.J. 488 (1979), cross-petition for certif.