Farmers Insurance Exchange v. Stratton

[614]

Opinion

NOMOTO, J.

*

The Case

This is an appeal from a declaratory judgment in favor of defendants Michelle, Brian and Jode Stratton (hereinafter Strattons) and Ronald and Terry Trotter (hereinafter Trotters), determining that plaintiff, Farmers Insurance Exchange, owed an obligation to either defend or indemnify defendants, Gerald Apoian and Executive Car Leasing, with respect to the claimed wrongful death of the named insured.

The Facts

The facts as stipulated to by the parties state that Farmers Insurance issued a policy of insurance to Louise Stratton and Executive Car Leasing effective October 21, 1978, on a BMW leased from Executive Car Leasing to Bell Sound Systems, Inc. which furnished it to Stratton for her use. The policy was in full force and effect on January 19, 1979, when Louise Stratton was killed while a passenger in the BMW. The BMW was being driven by defendant Gerald Apoian, with the permission of Louise Stratton. On December 14, 1979, Louise Stratton’s minor children (Michelle and Jode) filed an action for her wrongful death through their guardians, Brian E. Stratton and the Trotters.

The trial court held that the policy did not exclude any wrongful death claims of heirs against an unrelated party.

Discussion

Two questions are presented: (1) Does the “named insured” exclusion in the Farmers policy exclude coverage for a wrongful death action commenced against an unrelated party? (2) Is the language of the “named insured” exclusion clear and unambiguous?

1.

The “named insured” exclusion in the Farmers policy does exclude coverage of a wrongful death action commenced against an unrelated party.

The insurance policy in question provides:

[615]