Opinion ID: 2616603
Heading Depth: 1
Heading Rank: 6

Heading: exclusions from liability coverage provided in accordance with oklahoma compulsory insurance law must be executed by the insured and the insurer in a separate written endorsement.

Text: The first impression issue presented herein is whether the household exclusion clause which the insurer inserted into the printed form of the insurance policy providing liability coverage is contrary to law and invalid. Without expressing its legal rationale, today's per curiam opinion holds that the household exclusion clause is contrary to §§ 7-600, et seq. of Title 47. I agree with the Court's conclusion, but I would also conclude that the household exclusion clause is invalid as to the whole of the liability coverage. At its inception, our financial responsibility law authorized a household exclusion from motor vehicle liability insurance. [10] However some thirty years ago, the Legislature repealed the provisions allowing guest/passenger and household/family member exclusion from liability coverage required by the financial responsibility statutes. [11] Research reveals no preserved legislative intent for the 1961 statutory changes other than the intent obvious from the face of the measure  to reject clauses in motor vehicle liability insurance policies which exclude guest/passengers and household family members of the named insured from coverage. [12] The repealed household exclusion provision has not been reenacted. However, in 1980 the Legislature amended § 7-324 of the financial responsibility law, [13] adding a provision that a liability insurance policy may exclude any person or persons designated by name from coverage. The 1980 amendment clearly requires that any exclusion of a person or persons must be agreed to by separate endorsement between any named insured and the insurer: (b) Owner's policy. Such owner's policy of liability insurance: ... (c) May by agreement in a separate written endorsement between any named insured and the insurer exclude as insured any person or persons designated by name from coverage under the policy ... . In my view, for purposes of financial responsibility of motorists after the occurrence of an accident, the Legislature has expressed its intent that guest/passengers and household members may not be excluded from the liability coverage and that exclusions of a person or persons from liability coverage must be agreed to, in writing, by the insured and the insurer. In resolving the household exclusion clause issue herein. I would not ignore the public policy expressed by the Legislature in our financial responsibility statutes when it repealed the statutory household exclusion provisions and when it required a separate written endorsement to exclude a person or several persons from liability coverage. Our compulsory automobile liability insurance law requires every owner of an automobile and every operator to maintain security, i.e. and insurance policy, as required by § 7-204 of Title 47. [14] In 1982, the Legislature amended the compulsory insurance statutes, [15] adding a definitions section. The definition of owner's policy allows exclusions from coverage in accordance with existing law: [16] As used in Article VI, Chapter 7 of Title 47 of the Oklahoma Statutes: 1. Owner's policy. An owner's policy of liability insurance: ... c. may provide for exclusions from coverage in accordance with existing law, and ... . The liability insurance required by our compulsory insurance law is a condition precedent to driving a motor vehicle upon the public streets, roads and highways, while the liability insurance required under the financial responsibility law is not triggered until the occurrence of an accident. [17] These statutes have a common underlying public policy  financial protection for the public for damages wrongfully caused by motorists  and may be read with reference to each other. [18] Only one conclusion favorable to State Farm can be reached herein if the 1980 amendment to § 7-324 which authorized exclusions of persons from coverage by separate endorsement and the 1982 enactment of § 7-600 which authorized exclusions from coverage in accordance with existing law are read in pari materia. That conclusion is that an enforceable household exclusion from liability coverage in an owner's or operator's motor vehicle liability policy must be agreed to by the insured and the insurer by separate written endorsement. [19] Accordingly, I cannot join in today's per curiam holding which enforces the household exclusion clauses unilaterally inserted into the involved printed policies by the insurer. IV.