On Behalf of | Jul 31, 2020 | Insurance Law

In Shelter Mutual Insurance Co. v. Freudenburg 304 Nebraska 1015, 938 N.W.2d 92 (2020) the insurance company paid insurance policy in question had a sublimit of coverage in cases involving injuries to named insureds or their resident relatives. The sublimit was equal to the Nebraska’s minimum financial responsibility limits. In question was Nebraska revised statute 60-310 which stated that no policy of automobile liability insurance was permitted to exclude, limit, reduce, or other otherwise alter policy coverage solely because the injured person was the named insured or a resident of the same household. In this case, the insurance company argued that its household exclusion sublimit should permitted because it did not violate Nebraska statute. The insurance company argued that the statute applied to “automobile liability insurance” which referred to the coverage mandated by the statute and not for amounts of coverage above the minimum statutory limits. The Nebraska Supreme Court invalidated the insurer’s “partial” household exclusion after reviewing the legislative history of the statute.