An “uninsured motorist” policy provides coverage to the insured when he or she is the victim of an accident caused by another party that has insufficient resources to pay the full amount of any legal damages. In this context, “uninsured” also means under-insured. Thus, for example, if Driver A is in an accident caused by Driver B, and Driver B’s insurance only covers half of the damages awarded in a subsequent lawsuit, Driver A’s uninsured motorist carrier would pay the remaining half.
But what if Driver B is an agent of the State of Georgia? Normally, state agencies (and their employees) enjoy “sovereign immunity” from most civil lawsuits. The idea is that a state cannot be sued in its own courts without its consent, which is normally granted through legislation. However, when a local government in Georgia purchases liability insurance, sovereign immunity is waived up to the limit of said policy. What does this mean for accident victims with uninsured motorist coverage? A federal judge in Savannah recently attempted to answer this very question.
FCCI Insurance Company v. McLendon Enterprises, Inc.