Opinion ID: 883630
Heading Depth: 1
Heading Rank: 3

Heading: Cole v. Truck Insurance Exchange

Text: In this case, the parties have stipulated to the following facts: The plaintiffs, Eugene Cole and Mary Jo Cole, are husband and wife and are the parents of Lindsey Cole. At all times relevant to their claim, the Coles have lived together as a family at their residence in Manhattan, Montana. Prior to 1991, the Coles were insured by an automobile liability insurance policy issued by Truck Insurance Exchange. In 1991, they were issued a new policy by the same company which included the following language: We shall pay damages for which any insured is legally liable because of bodily injury or property damage caused by an occurrence arising out of the ownership, maintenance or use of any automobile. Insureds were defined to include the policy holder, any family member, or any person under the age of 21 who was a resident of the policy holders' household. The following exclusion was included in the 1991 policy: We do not cover Bodily Injury: . . . . 2. Arising out of the liability of any insured for bodily injury to you or a family member unless the law of the state where the insured resides specifically prohibits this exclusion. Included with the 1991 policy was a document entitled Endorsement S 7016, Montana First Edition. That endorsement provided that: Under Section II  Liability and Medical Coverage  Exclusions  Coverage D1  Automobile Liability, Item 2 under we do not cover bodily injury is deleted and replaced as follows: 2. Arising out of the liability of any insured for bodily injury to you or a family member to the extent the limits of liability of this policy exceed the limits of liability required by law. During each subsequent year, at the time of policy renewal, the Coles were provided with a declarations page which provided for bodily injury and property damage liability coverage in the amount of $500,000 for each occurrence. On November 20, 1993, while the aforementioned policy was in effect, Lindsey Cole drove an insured vehicle into her mother and caused bodily injury which has resulted in medical expense in excess of $43,000. The Coles, on behalf of Mary Jo, have demanded that Truck Insurance Exchange pay her damages in the amount of the policy limits of $500,000. Truck Insurance Exchange has paid $25,000 to Mary Jo, but has denied further coverage based on the language in its endorsement S 7016. Is the amendatory endorsement at issue here and set forth in the agreed facts valid and enforceable?