California Casualty Indemnity Exchange v. Deardorff

Opinion

MORRIS, P. J.

Appeal from a judgment in an action for declaratory relief brought by plaintiff.

Facts

Plaintiff issued an insurance policy covering four vehicles owned by defendants Herold and Arline Deardorff on August 27, 1980, in California. The policy contained uninsured motorist coverage of $15,000 per person/$30,000 per accident, bodily injury of $100,000/$300,000, property damage of $50,000, medical of $5,000 and comprehensive collision at $100 deductible.

In July 1981, while Herold Deardorff was driving one of the covered vehicles in Burnsvale, Minnesota, it was struck head on by a Minnesota resident driving the wrong way on a one way road. As a result of the accident, Mr. Deardorff incurred medical bills of $70,000 and Mrs. Deardorff, who was a passenger in the car, incurred bills totaling $90,000. Defendants received $25,000 each from the driver of the other car and $30,000 each from plaintiff.

The Deardorffs’ policy contained an out-of-state insurance provision which states:

“24. Out-of-State Insurance: If, under the provisions of the motor vehicle financial responsibility law or the motor vehicle compulsory insur

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anee law or any similar law of any state or province, a non-resident is required to maintain insurance with respect to the operation or use of a motor vehicle in such state or province and such insurance requirements are greater than the insurance provided by the policy, the limits of the Company’s liability and the kinds of coverage afforded by the policy shall be as set forth in such law, in lieu of the insurance otherwise provided by the policy, but only to the extent required by such law and only with respect to the operation or use of a motor vehicle in such state or province; provided that the insurance under this provision shall be reduced to the extent that there is other valid and collectible insurance under this or any other motor vehicle insurance policy. In no event shall any person be entitled to receive duplicate payments for the same elements of loss.”

In 1974, plaintiff signed a state of Minnesota no fault certification form which states that any liability policy issued by plaintiff “with respect to a motor vehicle as to which the owner is required to maintain security under Minnesota No-Fault Automobile Insurance Act, . . . shall be deemed to provide the security required by such Act.” The act requires basic economic loss coverage of $30,000, $20,000 for medical expenses and $10,000 for nonmedical.