business l Automobile Insurance Jowenna Surber owned a Mercedes- Benz automobile
ID: 453030 • Letter: B
Question
business l Automobile Insurance Jowenna Surber owned a Mercedes- Benz automobile that she insured through an insurance broker, Mid- Century Insurance Company (Mid- Century). Mid- Century secured a policy for Surber with the Farmers Insurance Company (Farmers). Surber gave permission to her friend, Bruce Martin, to use the car. Martin held a valid California driver's license. Surber did not receive any compensation for allowing Martin to use the car. While driving the car, Martin was involved in a collision with another vehicle, driven by Loretta Haynes, who suffered severe injuries. Martin admitted that his negligence was the cause of the accident. Surber's policy stipulates that the policy covers " you or any family member or any person using your insured car." Is Farmers liable to Haynes? Mid- Century Insurance Company v. Haynes, 218 Cal. App. 3d 737, 267 Cal. Rptr. 248, Web 1990 Cal. App. Lexis 219 (Court of Appeal of California)Explanation / Answer
The facts presented to the court were as follows about this case -
1. A Mercedes vehicle, owned by Jowenna Surber was an insured vehicle under Mid Century insurance policy.
2. On May 23, 1986, Bruce Martin (friend of Jowenna Surber) was driving that vehicle owned by her with her consent and permission and he was a permissive user of the Surber vehicle.
3. The fact is that Bruce Martin was not an agent or an employee of Jowenna Surber nor was he related to her by blood, marriage or adoption, nor was he a resident of her household.
4. Jowenna Surber was aware while allowing Bruce Martin to operate her vehicle.
5. It was Bruce Martin, who negligent in his operation of the Surber vehicle, which negligence resulted in a collision and proximately caused injuries to Loretta Haynes.
6. At that time was Jowenna Surber was not in the business of leasing, selling, repairing, servicing, delivering, testing, road testing, parking or storing automobiles.
7. At that time Bruce Martin was not referred to by name in the policy as a person having any specific coverage or limitation of coverage under the policy.
8. therefore Bruce Martin's rights in said policy have been assigned to Loretta Haynes.
As per policy documents – it defined insured person under Part I-Liability
1. You or any family member.
2. Any person using your insured car.
Further stated that it will provide insurance for an insured person, other than her or a family member, up to the limits of the Financial Responsibility Law only.
Haynes has challenged that the language in the policy stating that We will provide insurance for an insured person, other than you or a family member, up to the limits of the Financial Responsibility Law only, is unenforceable because Financial Responsibility Law is not defined. In this case, the insurer perform in clear and unambiguous terms which limit coverage for permissive users to that provided in the financial responsibility law. The policy provided coverage in excess of the minimum insurance requirements specified in Vehicle Code sections.
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