McCoy on Behalf of McCoy v. Preferred Risk Ins. Co., 54796

Citation471 So.2d 396
Decision Date05 June 1985
Docket NumberNo. 54796,54796
PartiesGeneral Lee McCOY, on Behalf of David J. McCOY, a Minor v. PREFERRED RISK INSURANCE COMPANY and Singing River Hospital System.
CourtUnited States State Supreme Court of Mississippi

E. Foley Ranson, Sadler & Ranson, Ocean Springs, for appellant.

Roy C. Williams, Linda D. Baggett, Robert Wilkinson, Megehee, Brown, Williams & Mestayer, Pascagoula, for appellees.

Before ROY NOBLE LEE, P.J., and HAWKINS and SULLIVAN, JJ.

HAWKINS, Justice, for the Court:

General Lee McCoy, legal guardian of his minor son David James McCoy, appeals from a judgment of the Chancery Court of Jackson County awarding interpleaded insurance proceeds to Singing River Hospital System (Singing River), a Jackson County hospital. These funds were interpleaded by Preferred Risk Insurance Company.

The issue we address on this appeal is the authority of McCoy and his wife as individuals to assign over unto Singing River the uninsured motorist benefits under two liability insurance policies held in the name of McCoy for injuries received by their son David.

Finding the McCoys had no such authority, we reverse as to such assignment of the uninsured motorist benefits. This decision does not affect the right of Singing River to receive all medical benefits for services rendered, as provided in the two policies.

FACTS

Preferred Risk Insurance Company (Preferred) on October 31, 1981, had in effect two liability insurance policies with its named insured General Lee McCoy. McCoy's minor son, David James McCoy, was critically injured that date in an automobile accident with an uninsured motorist.

Each of these policies provided for $2,000 maximum medical pay caused by a motor vehicle accident, and $10,000 maximum insured motorist liability.

David was hospitalized in the Singing River Hospital in Jackson County, and on November 3, 1981, his parents executed an assignment of all benefits due them by Preferred, acknowledging that on November 3 there was due Singing River the sum of $47,271.02.

On November 30 McCoy was appointed legal guardian of his son by decree of the Chancery Court of Jackson County.

Preferred recognized its liability under its policies to pay $4,000 in medical benefits, plus $20,000 in uninsured motorist benefits, and following a dispute as to the lawful recipient, filed a complaint for interpleader on January 7, 1982, making McCoy, David and Singing River parties defendant.

Singing River answered, alleging propriety and necessity of the medical and hospital services rendered David, and attaching an itemized account plus a copy of the assignment.

McCoy answered February 25, 1982, affirmatively alleging inter alia he had no authority individually to assign the benefits due under the policies, that he was later appointed legal guardian, and that the insurance proceeds should be paid to him as legal guardian.

The chancellor ruled that under the insurance policies the son had no interest in the proceeds and the father, as the named insured, had a right to assign the proceeds. A decree was accordingly entered directing release of the funds by the Chancery Clerk over unto Singing River.

The McCoys have appealed.

LAW

The chancellor was correct in that portion of his ruling dealing with medical benefits under the policy. The Medical Expense Benefits under the policy obligate Preferred to pay all reasonable medical expenses, and further authorized Preferred to pay either the insured or the person or organization rendering the medical services. 1 Under each policy the obligation for medical services was due primarily to Singing River and the chancellor so found. The $4,000 medical benefits were due Singing River, irrespective of the assignment.

The chancellor erred, however, as to uninsured motorist benefits. These benefits were due the son, David, who was the person injured, and his parents as individuals had no authority to assign such benefits over to Singing River.

Our Uninsured Motorist Law was first enacted by our legislature in 1966. The preamble to Chapter 524, General Laws of Mississippi 1966, states:

AN ACT to provide that no automobile liability insurance policy shall be issued unless coverage is provided therein for the protection of the insured against loss caused by an uninsured vehicle; to provide the procedure connected therewith; and for related purposes. [Emphasis added]

H.R. 121 (1966).

Section I of this Act provides that no insurance policy shall be issued in this State unless it contains an endorsement or provisions:

undertaking to pay the insured all sums which he shall be legally entitled to recover as damages for bodily injury or death from the owner or operator of an uninsured motor vehicle, ... [Emphasis added]

This act is now codified as Miss. Code Ann. Sec. 83-11-101 (Supp.1980).

In Rampy, et al. v. State Farm Mutual Automobile Insurance Co., 278 So.2d 428, 432 (Miss.1973), this Court stated:

In interpreting similar, if not identical statutes, the vast majority of jurisdictions have stated that the purpose of such uninsured motorist laws is to provide protection to innocent insured motorists and passengers injured as a result of the negligence of financially...

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9 cases
  • Bauhaus Usa, Inc. v. Copeland, 01-60343.
    • United States
    • U.S. Court of Appeals — Fifth Circuit
    • 21 Mayo 2002
    ...interest in insurance proceeds. 1. Mississippi's Anti-Assignment Rule Mississippi's anti-assignment rule was announced in McCoy v. Preferred Risk Ins. Co.,44 in which the Mississippi Supreme Court derived, from that state's uninsured-motorists law, the principle a parent, acting individuall......
  • Clardy v. ATS, Inc. Employee Welfare Benefit Plan
    • United States
    • U.S. District Court — Northern District of Mississippi
    • 26 Marzo 1996
    ...minor's right to insurance proceeds. Methodist Hospitals of Memphis v. Marsh, 518 So.2d 1227, 1228 (Miss.1988); McCoy v. Preferred Risk Ins. Co., 471 So.2d 396, 398 (Miss.1985). Using this rationale, the plaintiffs argue that a Chancellor must likewise approve any assignment of litigation p......
  • Clardy v. ATS, Inc., Civil Action No. 1:95cv135-D-D (N.D. Miss. 3/__/1996)
    • United States
    • U.S. District Court — Northern District of Mississippi
    • 1 Marzo 1996
    ...a minor's right to insurance proceeds. Methodist Hosps. of Memphis v. Marsh, 518 So.2d 1227, 1228 (Miss. 1988); McCoy v. Preferred Risk Ins. Co., 471 So.2d 396, 398 (Miss. 1985). Using this rationale, the plaintiffs argue that a Chancellor must likewise approve any assignment litigation pro......
  • In re Guardianship of Holmes, 2006-CA-00465-SCT.
    • United States
    • Mississippi Supreme Court
    • 27 Septiembre 2007
    ...prior chancery court approval, to execute any document granting a lien against the estate of an injured minor); and McCoy v. Preferred Risk Ins. Co., 471 So.2d 396 (1985) (parents had no authority to assign uninsured motorist benefits to hospital). ¶ 8. The United States District Court for ......
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