BatesCarey’s David J. Buishas, Craig M. Leff and Natalie H. Koepke obtained a summary judgment victory on an issue of first impression under Kansas law regarding whether a policy exclusion for government-owned underinsured vehicles is permitted under Kansas’ uninsured motorist statute. The statute allows insurers to exclude coverage for uninsured government-owned vehicles but does not expressly extend this exception to underinsured vehicles.

In Abramovitz v. Atlantic Speciality Ins. Co., 2024 WL 3273281 (D. Kan. 2024), the plaintiffs were the surviving heirs of a Leavenworth County Sheriff’s Deputy who died when his cruiser was struck by a school bus owned by the Tonganoxie, Kansas, school district. After settling with Tonganoxie for $500,000, Kansas’ tort cap for governmental entities, the plaintiffs sought underinsured motorist benefits under the Atlantic Specialty policy. Atlantic Specialty denied coverage, citing its government-owned vehicle exclusion, and the plaintiffs filed a declaratory judgment action. 

The United States District Court for the District of Kansas granted Atlantic Specialty’s motion for summary judgment, finding that Atlantic Specialty’s exclusion for government-owned “underinsured vehicles” was authorized by Kansas’ uninsured motorist statute. Noting that no Kansas court had addressed this narrow issue yet, the Court accepted the arguments that BatesCarey developed in interpreting the statute. As a result, the Court held that Atlantic Specialty’s exclusion for underinsured government-owned vehicles comported with Kansas law and excluded coverage for the subject accident.