Allstate Ins. Co. v. Dean

California Court of Appeal Jan 16, 1969 No. Civ. 32069Published

Before: Fleming

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Holding. A driver exclusion agreement that was not physically attached to, referenced in, or delivered with the insurance policy does not effectively exclude coverage, as the policy itself stated it embodied all agreements between the parties.

Issues

Whether a driver exclusion agreement signed by the insured but not included in or referenced by the issued policy is binding.
Whether an insurer's failure to deliver a complete policy containing all exclusions violates the Insurance Code.

Disposition. reversed

Quotations verified verbatim against the opinion

“In the absence of any restriction endorsed on the policy itself or incorporated in it by reference, Mrs. Dean was entitled to assume that the policy covered the operation of her vehicle without restriction.”

“It is elementary in insurance law that any ambiguity or uncertainty in an insurance policy is to be resolved against the insurer.”

“Additionally, the insurer solemnly declared in the final paragraph of its policy that the policy itself embodied all agreements between insurer and insured. Mrs. Dean was entitled to take Allstate at its word.”

FLEMING, J.

Vera Dean appeals a judgment declaring she has no cause of action against Allstate Insurance Company and enjoining her demand for arbitration of claims arising from an automobile accident.

In March 1964 Mrs. Dean applied to Allstate for automobile insurance. Thereafter she received a document entitled Driver Exclusion Agreement which read :

“To induce the Allstate Insurance Company to issue any policy which is issued as a result of Application No. K 176174 (or to continue any policy issued as a result of such application) the undersigned hereby agrees to inclusion of an endorsement, in the policy, containing the following provisions :

“In consideration of the issuance of said policy, (or continuation of the same policy if same is already in effect) it is agreed that the Company shall not be liable and no liability or obligation of any kind shall attach to the Company as a result of an accident or occurrence while any automobile insured under the said policy is driven or operated by William C. Dean (husband).

"I further agree to the inclusion of the above endorsement in any transfer, reinstatement or renewal of said policy.”

Below the place for applicant’s signature was the following : “This endorsement is effective from_, 19_,

[3]

12:01 A.M. Standard Time, and forms a part of policy number _0á5Ei9009_ issued to--

“In Witness Whereof, the Allstate Insurance Company has caused this endorsement to be signed by its president and its secretary, at Skokie, Illinois, but this endorsement shall not be binding upon the company unless countersigned by an assistant secretary or other authorized agent thereof. ’ ’

Mrs. Dean signed the document on 9 April 1964, and returned it to Allstate. At no time was she furnished a copy of the document. She subsequently received a printed policy of insurance and a declaration sheet for policy number 04539009, effective 22 April 1964. The declaration sheet did not refer to exclusion of coverage for her husband, or to the document of 9 April, or to any endorsement to the policy. Nor did the printed policy consisting of 17 pages of double-column text refer to such an exclusion. Rather its final paragraph declared: “By acceptance of this policy the named insured agrees that the Declarations on the Supplemental Page are his agreements and representations, and

Allstate Ins. Co. v. Dean

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FLEMING, J.

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