Opinion ID: 2623504
Heading Depth: 4
Heading Rank: 1

Heading: Owner's Coverage

Text: ¶ 17 As an owner's policy, the Calhouns argue that the Progressive policy must cover John's permissive use of any household member's vehicle. They base this assertion on the language in subsection (A) of section 31A-22-303(1)(a)(ii), which states that an owner's policy must insure the person named in the policy. Id. § 31A-22-303(1)(a)(ii)(A). According to the Calhouns, this language requires an owner's policy to insure the named insured not just as to liability incurred from driving the motor vehicle named in the policy, but also as to liability incurred from driving all other vehicles with either the express or implied permission of the owner. Under this interpretation, the Calhouns argue that the Progressive policy must provide insurance coverage for John's use of his father's Jeep. ¶ 18 If we were to interpret the phrase insure the person named in the policy in isolation, we would no doubt be more inclined to agree with the Calhouns' position. However, when deciding questions of statutory interpretation we do not look to language in isolation. Rather, we look first to the statute's plain language, in relation to the statute as a whole, to determine its meaning. Bd. of Educ. v. Sandy City Corp., 2004 UT 37, ¶ 9, 94 P.3d 234. When viewed in light of the language and structure of section 31A-22-303, we conclude that subsection (A)'s mandate that an owner's policy insure the person named in the policy requires only that a policy provide insurance for the person named in the policy with respect to damages arising out of the insured's use of the motor vehicle named in the policy. ¶ 19 Section 31A-22-303(1)(a)(i) begins with the requirement that all automobile insurance policies include certain basic coverage information, including the name of the automobile owner or operator in whose name the policy is purchased, the named insured's address, the coverage afforded by the policy, the premium charged for the coverage, the period for which the policy will provide coverage, and the policy's limits of liability. Utah Code Ann. § 31A-22-303(1)(a)(i). The statute goes on to include additional policy coverage requirements, depending on whether the policy is an owner's policy or an operator's policy: (ii) (A) if it is an owner's policy, designate by appropriate reference all the motor vehicles on which coverage is granted, insure the person named in the policy, insure any other person using any named motor vehicle with the express or implied permission of the named insured, and, except as provided in Subsection (7), insure any person included in Subsection (1)(a)(iii) against loss from the liability imposed by law for damages arising out of the ownership, maintenance, or use of these motor vehicles[;] ... or (B) if it is an operator's policy, insure the person named as insured against loss from the liability imposed upon him by law for damages arising out of the insured's use of any motor vehicle not owned by him ... with the same limits of liability as in an owner's policy under Subsection (1)(ii)(A); Id. § 31A-22-303(1)(a)(ii)(A)-(B) (emphasis added). ¶ 20 The legislature's separation of these two sections by the disjunctive or, as opposed to the conjunctive and, clearly mandates that a policy need only provide owner's coverage or operator's coverage not both. [3] See Utah Code Ann. § 41-12a-301(2)(a) (requiring vehicle owners to maintain owner's or operator's security (emphasis added)). Given the clear division between an owner's policy as described in subsection (A), and an operator's policy in subsection (B), a plain reading of this statute suggests that the legislature intended for an owner's policy to provide coverage with respect to a particular vehicle, and for an operator's policy to provide coverage for a particular individual. ¶ 21 Our interpretation is guided by the fact that, in distinguishing between these two policy types, the legislature chose the terms owner and operator. By definition, the term owner is closely associated with a specific vehicle, see id. §§ 31A-22-301(6), 41-12a-103(8)(a) (defining owner as a person who holds legal title to a motor vehicle), while the term operator is more closely associated with the specific individual, see id. §§ 31A-22-301(5), 41-12a-103(7) (defining operator as every person who is in actual physical control of a motor vehicle). ¶ 22 Our interpretation is further supported by the fact that the phrase insure the person named in the policy is preceded by the requirement that the policy designate by appropriate reference all the motor vehicles on which coverage is granted,  and followed immediately by the requirement that the policy insure any other person using any named motor vehicle with the express or implied permission of the named insured. Id. § 31A-22-303(1)(a)(ii)(A) (emphasis added). Subsection (A)'s requirement that an owner's policy insure the vehicle named in the policy, as opposed to subsection (B)'s requirement that an operator's policy insure the insured's use of any vehicle, supports our conclusion that, unlike an operator's policy, an owner's policy only mandates insurance coverage of the insured's use of the vehicle (or vehicles) named in the policy. ¶ 23 Finally, interpreting the phrase insure the person named in the policy in subsection (A) as pertaining only to the insured's use of the named vehicle is also favorable from a public policy perspective. Section 31A-22-303(1)(a)(iii) requires insurance policies to insure all household members not specifically excluded under subsection (7) to the same extent as the named insured. Id. § 31A-22-303(1)(a)(iii). If we were to follow the Calhouns' proposed interpretation and require an owner's policy to provide the type of operator's coverage contemplated by subsection (B), owners of multiple vehicles could purchase an owner's policy for one vehicle and, absent a named driver exclusion for each member in the insured's household, [4] obligate insurance companies to provide coverage for all other uninsured vehicles and for all other household members. This would, as Progressive notes, undoubtedly result in markedly higher insurance premiums and could seriously impact the ability of automobile owners to obtain affordable automobile insurance. ¶ 24 Therefore, we hold that the phrase insure the person named in the policy in section 31A-22-303(1)(a)(ii)(A) requires that an owner's policy insure the named insured with respect to the vehicle named in the policynot that an owner's policy must insure the named insured with respect to any vehicle he or she drives. Because the Progressive policy does so in this case, it complies with the minimum insurance requirements of an owner's policy under subsection (A). Accordingly, as an owner's policy, the Progressive policy is only required to provide insurance coverage to John for accidents arising out of the use of his Suzuki, not his father's Jeep.