California Casualty Indemnity Exchange v. Steven

Opinion

CHRISTIAN, J.

Appellant California Casualty Indemnity Exchange brought this action against its insured, Irene P. Steven, and her son, David, praying for a declaratory judgment determining that uninsured motorist coverage in the automobile liability policy issued to Mrs. Steven had been waived as to David. The appeal is from a judgment determining that there was no such waiver.

[306]

The facts are not in dispute. On October 16, 1966, California Casualty issued an automobile liability policy to Mrs. Steven. The policy was to run for a period of one year, and provided for uninsured motorist coverage

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of up to $10,000 per person, with a maximum of $20,000 per accident. On November 1, Mrs. Steven consented to the following endorsement of her policy:

“Exclusion of Named Driver.

“Effective on and after 10-16-66 it is hereby understood and agreed that the insurance afforded by this policy shall not apply with respect to any claim arising from accidents which occur while any automobile or highway vehicle is operated by, or entrusted to the care, custody and control of David Henry — son ...”

This was apparently done because David’s driving record would otherwise have resulted in appellant’s refusal to insure Mrs. Steven.

On January 22, 1967, David suffered injuries when he was struck by an uninsured vehicle. At that time, David was operating a vehicle covered by an unrelated insurance policy which specifically excluded uninsured motorist coverage. David will be entitled to compensation, under his mother’s policy, unless the endorsement of November 1 is effective as to the uninsured motorist coverage.

Appellant argues that its intent, and that of Mrs. Steven, as evidenced by the endorsement, was that the policy was to afford no coverage of any sort for accidents occurring while David was driving. Accordingly, appellant urges that the endorsement should be construed according to its plain meaning. Appellant cites authorities, dealing with the interpretation of written instruments, to the effect that the “language used in an insurance contract must be given its plain and ordinary meaning, and when it is unambiguous it must be given effect.”