Opinion ID: 1221995
Heading Depth: 1
Heading Rank: 2

Heading: liability of caarp

Text: Plaintiff's causes of action against CAARP alleged the following facts which, for purposes of reviewing the rulings below, we accept as true. ( Scott v. City of Indian Wells (1972) 6 Cal.3d 541, 549 [99 Cal. Rptr. 745, 492 P.2d 1137].) CAARP is an unincorporated association of insurance companies organized under Insurance Code section 11623 (unless otherwise indicated, all statutory references are to the Insurance Code). Its function is to administer the assigned risk automobile insurance program which is established by sections 11620-11627. In November 1971 Warkentin was 79 years of age and incapable of operating an automobile safely because of lack of mental capacity and alertness, and senility. On October 5, 1971, Klassen, acting on behalf of Warkentin, submitted to CAARP Warkentin's signed application for liability insurance in the amount of $15,000. At this time Klassen allegedly had personal knowledge of Warkentin's inability to operate an automobile safely, but failed in the application to disclose this information to CAARP. CAARP assigned the issuance of Warkentin's liability policy to United Services Automobile Association (United) thereby inducing Warkentin to believe that he could operate an automobile safely. CAARP's application form allegedly failed to require applicants to submit information regarding their mental or physical capacity for driving, and had such information been sought or furnished, as required by law, neither CAARP nor United would have issued the policy. Further, it is alleged that, in the event CAARP had notified the Department of Motor Vehicles (DMV) of its rejection of Warkentin's application, the DMV would thereupon have revoked Warkentin's drivers license, and that, deprived of both license and insurance, he would not have been operating his vehicle on the date of the accident. The complaint concludes that CAARP's omissions to elicit information regarding Warkentin's infirmities, to reject his assigned risk application, and to notify the DMV thereof, in conjunction proximately and foreseeably caused the accident to plaintiff, a member of the motoring public.