S.C. Supreme Court ruling in Myrtle Beach-area case could help consumers in insurance disputes
By David Wren, The Sun News (Myrtle Beach, S.C.) | |
McClatchy-Tribune Information Services |
The justices ruled last week that trial courts statewide now can use a legal principle known as the doctrine of reasonable expectations when settling policy coverage disputes. The doctrine states that whenever an insurance policy's terms are not clear, the dispute will be resolved according to what the consumer believes the policy states.
Previously,
"This makes a big difference," said
While the ruling represents a philosophical shift for S.C. courts, the justices left no doubt that the doctrine is to be used sparingly.
"While we now hold that reasonable expectations may be used as another interpretive tool, the doctrine cannot be used to alter the plain terms of an insurance policy," the justices wrote in their decision, adding "we decline to apply the doctrine where a contract of insurance unambiguously denies coverage under its plain terms."
"They limited its application here to only those instances where the policy is ambiguous," Kefalos said. "In some states, it can override the terms of the policy."
In
Kefalos said the
The case that led to the court's ruling involved an
The man sued the insurance company, claiming the policy was ambiguous because it listed him as a driver but not as an insured person. A circuit court judge and the state
While the state
"It was a case where we lost the battle, but we won the war," Connell said.
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