Saturday, October 27, 2007
Nebraska Insurance Guaranty Act bars all subrogation claims against insureds unless they are outside the scope of the insolvent insurer's policy. Car owner sued dealership for damages arising from repairs the plaintiff alleged were faulty. The car owner paid his $1000 deductible and his own insurer picked up the rest. The dealership's insurer became insolvent after the Plaintiffs started the lawsuit and the district court dismissed the action under the provisions of the Nebraska Insurance Guaranty Act that prohibits subrogation actions against responsible defendants. Nebraska Supreme Court agrees that the plaintiffs could not file action directly against the dealership unless the accident was beyond the coverage of the garage policy and material issues of fact prevented summary judgment for the dealership on coverage. Alsobrook v. Jim Earp Chrysler-Plymouth, S-06-383, 274 Neb. 374"Section 44-2403(4)(b) prohibits subrogation claims from being asserted against an insured of an insolvent insurer, except to the extent that the claim is outside of or in excess of the insurance policy issued by the insolvent insurer. T he district court erred in concluding, as a matter of law, that Alsobrook’s entire claim, in excess of the deductible, is barred by the A ct"