Auto Policy UM Exclusions

As it relates to uninsured motorist (UM) coverage, there are three important exclusions. Auto policies do not provide UM coverage for any person for bodily injury sustained while occupying or when struck by any motor vehicle owned by the insured or any family member who is not insured for UM coverage under the policy.  This is known as the family member exclusion.  The Courts of Appeals in Houston, Dallas, and Corpus Christi have well written opinions dealing with and upholding this exclusion.  The Dallas Court of Appeals has written that: “It is not the function of UIM coverage to operate as liability insurance and protect family members from their own negligence in owning and operating an underinsured automobile.” Another exclusion is “settlement without consent” exclusion.  To preserve the carrier’s right to subrogation against the at-fault party, the policy states that it will not provide UM coverage to an insured who…

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