Opinion ID: 76866
Heading Depth: 2
Heading Rank: 2

Heading: Michigan Mutual's Policy

Text: 4 Ford entered into a separate insurance agreement with Michigan Mutual (the policy), which contains three sections. The commercial general liability section provides coverage for Ford's premises and operations activities. The business auto section provides coverage for a group of vehicles used by Ford for business purposes. The personal auto section is designed to provide coverage to a group of vehicles assigned to Ford management personnel under the lease evaluation program. The lease agreement signed by the Ford personnel in the lease evaluation program, unlike the retail lease agreements signed by the plaintiffs here, specifically states that the Company [Ford] provides insurance on the vehicle during the term of the lease. Ford employees who participate in the lease evaluation program also receive a certificate of no-fault insurance and an identification card that indicates their coverage under the Michigan Mutual policy. 5 This consolidated appeal involves only the personal auto section of the Michigan Mutual policy and specifically what is entitled the personal auto policy supplement (auto supplement) to the policy. We outline the key provisions of the auto supplement. The first page of the auto supplement is a Declarations sheet that lists the Named Insured. Specifically, Item 1 of the Declarations sheet lists the Named Insured as Ford Motor Company, its U.S. subsidiaries, and any person to whom an automobile has been assigned, leased or loaned. (Emphasis added.) 2 6 Item 2 on that same Declarations sheet describes the vehicles insured as follows: Description of Auto ... See Endorsement ¶ FO RD 04. In turn, Endorsement ¶ FO RD 04 defines Your Covered Auto as vehicles with one of these three tag designations: L — Leased Vehicles;E — Executive Vehicles; andS — Sales Vehicles. These three tag designations are used by Ford to specify vehicles assigned, leased, or loaned to Ford's employees and retirees for business or personal use. None of these tag designations is used for vehicles leased to retail customers, such as the plaintiff lessees. 7 Further, the auto supplement provides primary coverage to the insured for liability, for medical payments, and for uninsured motorist coverage. Insured in the medical payment section of the auto supplement is defined as: 8
9 A. While occupying ... a motor vehicle ... 10
11 Insured in the uninsured motorist section of the auto supplement is defined similarly to the medical payment section as: 12 1. You or any family member. 13 2. Any other person occupying your covered auto. 14 In addition to primary coverage, the auto supplement contains the following language, providing contingent loss and excess auto liability coverage to the Named Insured and excluding such excess liability coverage to lessees as follows: 15 This policy, however, shall provide contingent loss and excess auto liability coverages for autos included in the following programs: 16
17 but only as respects the liability of the Named Insured. No coverage is provided to lessees, agents, or permissive users. 3 18 Although reciting what we believe to be certain provisions at issue in this appeal, we point out that the Michigan Mutual policy, including the entire auto supplement, is in the record. 4