Opinion ID: 1414283
Heading Depth: 1
Heading Rank: 2

Heading: oregon law applies.

Text: In Unigard Insurance Group v. Royal Globe Insurance Co., 100 Idaho 123, 594 P.2d 633 (1979) this Court held that Idaho law applied in a case that was the converse of this one. In Unigard two Idaho residents were involved in an automobile accident in Oregon in which one of them was killed. The case was brought to determine which of three insurance policies would be treated as providing the primary coverage for the accident. After reaffirming the most significant relationship test for determining whether Oregon or Idaho law would apply, the opinion reviewed the choice-influencing considerations. Among these considerations were that Idaho was the place of negotiation and issuance of the policies, the place where the insured automobiles were located, and the domicile, residence, and place of business of the driver and the deceased passenger. The opinion concluded the discussion of this issue by stating: Regarding the accident which occurred in Oregon, the needs of the interstate system require that persons who travel from their residence into another state have protection of the laws equal to that afforded to persons who have not crossed state lines. Rungee v. Allied Van Lines, Inc., [92 Idaho 718, 449 P.2d 378 (1968)]. In negotiating and executing the respective insurance contracts, both [of the insurance companies] justifiably expected that the laws of Idaho would apply. The combined weight of all these considerations leads us to the conclusion that Idaho has the most significant relationship with the transaction and parties here involved. We therefore hold that the district court was correct in applying Idaho law to this action. 100 Idaho at 126-27, 594 P.2d at 636-37. Here, the trial court acknowledged that Oregon was the principal location of the risk and the state with the most significant relationship. However, the trial court concluded that these factors are outweighed by Idaho's public policy concerning family members and uniformity in requiring the same mandatory insurance of persons using Idaho's highways. This case calls for the application of the choice of law principle established in Unigard. We agree with the trial court that Oregon was the state with the most significant relationship to the facts of this case. We are unable to agree that there is any public policy that overrides this choice. Apparently, the trial court considered that the new law declared in its decision was a modification of the public policy announced in Reed. However, the trial court's analysis breaks down when it attempts to use Reed to establish this public policy. In Reed a father and mother sued their son, who had been the driver of a vehicle involved in an accident that caused the death of their other child. The insurance company that insured the vehicle sought to avoid coverage under the policy on the basis of a household exclusion clause similar to the one in this case. This Court held that the household exclusion did not shield the company from liability under the policy, because of the requirements of I.C. § 49-233 (1978). The pertinent portion of this statute, as it existed at the time of the decision in Reed, provided: 49-233. Required Motor Vehicle Insurance.  (a) Every owner of a motor vehicle which is registered and operated in Idaho by the owner or with his permission shall continuously provide insurance against loss resulting from liability imposed by law for bodily injury or death or damage to property suffered by any person caused by maintenance or use of motor vehicles described therein in an amount not less than that required by section 49-1521, Idaho Code, and shall demonstrate the existence of any other coverage required by title 49, Idaho Code, or a certificate of self-insurance issued by the department pursuant to section 49-1534, Idaho Code, for each motor vehicle to be registered.