Does Policy That Expressly Includes Drivers Subject to Sovereign Immunity As 'Uninsured Motorists' Waive Immunity Defense?

Insurer Disputes UM Coverage Because Policyholder Not 'Legally Entitled to Recover'

Maria Marusa et al. v. Erie Insurance Company, Case no. 2012-0058

Eighth District Court of Appeals (Cuyahoga County)

ISSUE: When the uninsured/underinsured motorist (UM/UIM) coverage in an auto insurance policy expressly includes in the definition of an "uninsured vehicle" a vehicle driven by a person who is exempt from civil liability under the state's sovereign immunity statute, may the insurer nevertheless deny UM/UIM coverage for damages caused by an immune driver based on general policy language that limits UM coverage to losses the policyholder "is legally entitled to recover."