Opinion ID: 1827681
Heading Depth: 1
Heading Rank: 2

Heading: BLOCK v. RELIANCE INSURANCE COMPANY

Text: In Block v. Reliance Insurance Company , a fleet policy was involved, not a family combination automobile policy. A fleet policy is generally issued to a business to provide coverage for several vehicles owned or operated by the company. The named insureds are often the company and the officers of the company, who are responsible for the payment of the premiums. In only two cases have we had the opportunity to consider the stacking of uninsured motorist coverage under policies covering large numbers of cars, and in both cases we denied writs, even though the lower courts arrived at conflicting holdings. In Briley v. Falati, 367 So.2d 1227 (La.App.), writ denied, 369 So.2d 1379 (La.1979), the Fourth Circuit held that a person insured only as a lessee of a vehicle was not entitled to stack separate uninsured motorist coverages on sixty-six vehicles included in a multi-vehicle policy issued to the lessor. In Holmes v. Reliance Insurance Co., 359 So.2d 1102 (La. App.), writ denied, 362 So.2d 1120 (La.1978), the Third Circuit permitted stacking under a garage liability policy insuring one hundred sixty vehicles. The plaintiff was driving a car owned and insured by his employer. The present case is distinguishable from Briley v. Falati, supra, and Holmes v. Reliance Insurance Co., supra, in that Richard Block was an insured under the policy. He was designated as an insured in a later endorsement to the fleet policy. In the Briley case, the plaintiff was not an insured under the fleet policy; in the Holmes case, the policy was not a fleet policy, but did cover one hundred sixty vehicles, including the one driven by the plaintiff. The first question to be answered is whether the injured plaintiff is an insured under the policy. Seaton v. Kelly, supra. In the present case the endorsements to the policy clearly designate Block as an insured. Block's coverage under the fleet policy is unique. He was not the named insured in the principal policy. Instead, he became an insured on July 15, 1977 in an additional interest endorsement under the liability portions of the policy. [7] The Additional Interest Endorsement is not further explained or defined in the policy. Block was operations manager for an off shore services and transportation business. When the accident happened he was in the course and scope of his employment, driving the small pickup described in the endorsement (see footnote 1), transporting Glenn Piggot (the port captain for the business) from one of the company's boats to inspect another boat. Block bought the truck to use in his employment, adding a camper body to it for transporting parts, supplies and materials. The truck was added to the company's policy by the endorsement; there was no other insurance on it. The added premiums for the endorsement were deducted from Block's expense check by his employer, who paid him on a mileage basis for the use of the truck in the business. Block is specifically designated an insured in the endorsement, which states that the liability coverage should apply to his interest as an insured. The schedule of coverages accompanying the endorsement break down the premiums charged for bodily injury and property damage liability, and for medical payments, comprehensive and collision insurance, as well as uninsured motorist coverage for each of Block's vehicles. Under the terms of the Uninsured Motorist coverage in the policy, Block was occupying an insured highway vehicle according to paragraphs II(b) and V(a) (definition of insured highway vehicle.) [8] There was available to him, therefore, the same right to cumulate the uninsured motorist benefits that were available to an insured when the policy was issued. The judgments of the Courts of Appeal in both cases are reversed, at respondents' cost. In Faria et al. v. Smoak et al., No. 82-C-2083, the judgment of the district court is reinstated. In Block v. Reliance Insurance Company, No. 82-C-1956, the judgment of the district court is amended to grant judgment in favor of Richard A. Block and against respondent Reliance Insurance Company in the full sum of $60,000, plus interest as therein provided, and otherwise affirmed and reinstated.