Allstate Insurance v. Superior Court

Opinion

KAUFMAN, Acting P. J. In a declaratory relief action brought against its insureds and third party claimants, petitioner Allstate Insurance Company seeks a writ of mandate compelling the respondent court to vacate its denial of Allstate’s motion for summary judgment. The issue presented is whether a “driver exclusion agreement” executed as part of an automobile insurance policy is binding when signed by only one of two married insureds. We hold that, under the express and clear statutory provisions which apply, the exclusion in this case was binding and should have been applied by the court to preclude any claim against petitioner insurer for coverage or defense arising [244]out of the underlying wrongful death suit. Accordingly, a writ of mandate shall issue.

Facts

Petitioner insurer issued an automobile insurance policy to defendant Arthur Loyer as the only named insured providing coverage of a 1982 Ford Escort owned by Loyer and his wife Dorothy with the two of them as insured drivers. The policy included a “driver exclusion agreement” which provided: “To induce the Allstate Insurance Company to issue any policy which is issued as a result of Application No. _ (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: [11] In consideration of the issuance of said policy, (or continuation of the said policy if same is already in effect) it is agreed that the Company shall not be liable and no liability or obligations of any kind shall attach to the Company as a result of an accident or occurrance [sz'c] while any automobile insured under the said policy is driven or operated by David Frederick Loyer.”

The excluded driver is Arthur and Dorothy Loyer’s son. The driver exclusion agreement was signed by Arthur Loyer only, the only named insured under the policy.1

The insurance policy was in effect on December 3,1983, when the insured automobile, driven by excluded driver David Loyer, was involved in an accident which killed Thomas Allen Sandberg. A complaint for wrongful death was then filed against David Loyer and his parents Arthur and Dorothy Loyer by the victim’s parents, Chris Sandberg and Karen Sandberg Dillingham. The complaint included causes of action for negligence, negligent entrustment, statutory vicarious liability, and willful misconduct.