McKinney v. Farmers Insurance Exchange

Opinion

BROWN (H. C.), Acting P. J.

E. L. McKinney and his son, Donald L. McKinney, brought an action for declaratory relief to establish that defendant insurer was liable under its uninsured motorist coverage for injuries to the named insured’s son. Judgment went for the insurer on the ground that the accident was one which would come within the exemptions of the mandatory insurance coverage required by statute. It is concluded that the statutory exemption could not be applied to the policies in question without notice to the named insured because the policy itself requires notice of any decrease in coverage.

There is but one issue presented on this appeal. Does section 11580.2, subdivision (c) (6) of the California Insurance Code, as amended November 13, 1968, operate to restrict the uninsured motorist coverage in the policies involved herein without notice to the named insured?

There is no dispute on the facts. Appellant E. L. McKinney had two insurance policies with respondent Farmers Insurance Exchange which provided uninsured motorist benefits up to the sum of $15,000 under each of the two policies which were in full force and effect at the time of the accident described herein. Both policies extend uninsured motorist coverage to relatives of the named insured living in the same household.

The appellant Donald L. McKinney was a resident in his father’s household at the time he was involved in an accident with an uninsured motorist. Donald McKinney was driving his own automobile, which was registered in his own name and was not insured.

[949]

The respondent concedes that the insurance policies of E. L. McKinney would have-provided uninsured motorist coverage for appellant but for the November 13, 1968 amendment to section 11580.2 of the Insurance Code which, respondent contends, effected an automatic amendment to the policy without the need of notice to the insured. Section 11580.2, subdivision (c)(6) reads as follows: “(c) The insurance coverage provided for in this section does not apply:

(6) To bodily injury of the insured while occupying a motor vehicle owned by an insured, unless the occupied vehicle is an insured motor vehicle.”

It is first to be noted that the insurance coverage provided for by section 11580.2 is a mandatory