Application of Local Law Mandates Coverage

FCCI Insurance Group v. Hinesley, (N.C. Ct. App., December 1, 2015)

The policyholders were injured in a motor vehicle accident with an employee of the local government operating a government vehicle. The uninsured motorist coverage provision of the policy issued by the insurer provided that an uninsured motorist vehicle did not include self-insured vehicles. The insurer filed a declaratory judgment action seeking a determination that there was no coverage for the policyholders because the government vehicle and driver were self insured. The court upheld the trial court’s decision that the government vehicle and driver were not self-insured, and thus coverage was available, because of a local resolution taken pursuant to state law.