Court Opinion

ID: 9513516
Source: CourtListenerOpinion
Date Created: 2023-08-06 22:37:10.348986+00
Date Added: 2024-06-11T09:05:53.772521
License: Public Domain

SANDSTROM, Justice.
[¶ 1] AMCO Insurance Company (“AMCO”) appealed from an amended judgment awarding Lory L. McPhee and Roy McPhee, individually and as the surviving parents of Sandra A. McPhee, $100,000 from the proceeds of an automobile liability insurance policy AMCO issued to Curtis and Debra Tufty. We conclude the trial court erred in ruling the AMCO insurance policy provided coverage under the circumstances, and we reverse.
I
[¶ 2] In 1994, Curtis and Debra Tufty’s teenage son, Christopher Tufty, lived in Gwinner with his parents and brother and sister, Travis and Amanda Tufty. In September 1994, Curtis and Debra Tufty renewed until March 1995 an automobile liability insurance policy they had purchased from AMCO through Brian Orn of the Forman Insurance Agency. The policy limits of the AMCO policy were $100,000 per person and $300,000 per accident, and Curtis, Debra and Travis Tufty were listed on the original application as “Drivers.” Christopher and Amanda Tufty were listed as “Children Or Others In Household Not Driving.” A 1988 Ford van, a 1979 GMC pickup, and a 1983 Dodge four-door were listed on the declarations page of the policy as the insured vehicles.
[¶ 3] After Christopher Tufty turned 16 years old in April 1994, his parents bought him a 1978 Ford pickup for $500, and the pickup was insured effective May 25, 1994, under the AMCO policy. The engine failed shortly thereafter, and the Ford pickup was dropped from coverage on June 13, 1994. Orn was not informed Christopher was the principal user of the pickup when coverage was obtained.
[¶ 4] On June 16, 1994, Curtis Tufty wrote a $650 check for the purchase of a 1973 Pontiac LeMans. According to Curtis and Christopher Tufty, the teenager paid his father for the car from money he had saved while working part-time during the school year and full-time during the summer. Curtis Tufty said he wrote a check for the Pontiac to make a record of the transaction because Christopher Tufty did not have a checking account.
[¶ 5] Curtis and Debra Tufty wanted to add the Pontiac to their AMCO policy, but Orn requested a driving record for Christopher Tufty. The driving record revealed he had been convicted in 1993 of operating a vehicle without a license and fleeing a law enforcement officer, resulting in his license being suspended for more than 100 days. Orn told Curtis Tufty that AMCO would not cover Christopher Tufty because of his driving record. Orn obtained quotations for coverage from three high-risk insurance carriers, and on September 16, 1994, Orn prepared an application for insurance for the Pontiac with Farm and City Insurance Company (“Farm and City”). The application listed Curtis Tufty as the “Owner” and Christopher Tufty as one of the “Operators.” The application informed the company AMCO would not insure Christopher Tufty because of his “driving record.” Farm and City issued a policy effective September 16, 1994, to December 16, 1994, which had liability coverage limits of $25,000 per person and $50,000 per accident. Orn opened a second file with a second log relating to *393Christopher Tufty. Curtis and Debra Tufty continued to pay the premium on the AMCO policy and also paid the premium on the Farm and City policy.
[¶ 6] In the meantime, AMCO requested information from Orn during summer 1994 about the status of Christopher Tufty as a driver under its policy. AMCO sent two requests for the information in August and September 1994, but Orn did not respond with an update on his driver status.
[¶ 7] On November 12, 1994, Curtis Tufty wrote a $200 check for the purchase of a 1976 Toyota Corolla. Curtis and Christopher Tufty said the teenager again paid his father cash for the Toyota within the next couple of days. According to Curtis Tufty, he again paid by check so there would be a family record of the transaction. According to Christopher Tufty, the Toyota was intended to be a replacement vehicle for the Pontiac. No request was made to Orn at that time to have the Toyota covered by either the AMCO or Farm and City insurance policy. The Toyota also was not registered in the name of either Curtis or Christopher Tufty.
[¶ 8] On November 27, 1994, Christopher Tufty was driving the Toyota when it was involved in an accident with another vehicle near Gwinner. A passenger in the Toyota, Sandra McPhee, was killed, and two other passengers were injured. Debra Tufty informed Orn of the accident that evening. A log entry in both Curtis and Christopher Tuftys’ files at the insurance agency stated:
Debra called this evening to tell us that their son, Christopher was involved in a[n] accident east of Gwinner. He had 8 other passengers with him and slid on ice through a[n] intersection and 1 of the occupants was killed. She also said that they had purchased a different car for Chris on Nov. 12, 1994. The other passengers were also hurt, however, none were injured severely. The driver of the other auto was not hurt. See Loss Notice in file for more information. Debra said there was no alcohol or drugs involved. She will call us with the Vin number tomorrow.
Orn sent a loss notice regarding the accident to Farm and City, but did not send a loss notice to AMCO.
[¶ 9] On November 29, 1994, Orn sent AMCO Christopher Tufty’s driver information the company had previously requested during the summer. On December 1, 1994, AMCO amended the Tuftys’ policy to omit Christopher Tufty as a household member not driving. On January 31, 1995, Curtis Tufty had the Farm and City policy changed to list only Christopher Tufty. The AMCO policy was again changed on March 20, 1995, to specifically list Christopher Tufty as an excluded driver. On November 7, 1996, Orn filed an automobile loss notice with AMCO.
[¶ 10] Sandra McPhee’s parents, Lory and Roy McPhee, brought a wrongful death action against Curtis and Christopher Tufty in March 1998. The McPhees and the Tuftys entered into a Miller v. Shugart settlement agreement1 under which the Tuftys confessed judgment in the amount of $124,000. A stipulated judgment against Christopher Tufty was satisfied from $24,000 in proceeds from the Farm and City insurance policy. The McPhees agreed to seek the remaining $100,000 of the judgment from Curtis Tufty’s AMCO insurance policy, and he assigned his rights against AMCO to the McPhees. The McPhees and AMCO then entered into a stipulation in which AMCO agreed to be added as a party in the underlying action by service of a garnish*394ment complaint. They also agreed the court would determine whether Curtis Tufty was liable under the family car doctrine and whether the AMCO insurance policy provided coverage under the circumstances. Following an evidentiary hearing, the trial court found Curtis Tufty was liable under the family car doctrine and ruled the AMCO insurance policy provided coverage for the accident.
[¶ 11] The trial court had jurisdiction under N.D. Const. art. VI, § 8, and N.D.C.C. § 27-05-06. AMCO’s appeal is timely under N.D.R.App.P. 4(a). This Court has jurisdiction under N.D. Const. art. VI, § 6, and N.D.C.C. § 28-27-01. Retaining jurisdiction under N.D.R.App.P. 35(b), we temporarily remanded this case to the trial court for clarification of an inconsistency in two of its findings of fact. The trial court has submitted its clarification.
II
[¶ 12] AMCO argues the trial court erred in ruling the family car doctrine applied in this case to render Curtis Tufty liable for Christopher Tufty’s negligence.
[¶ 13] The family car doctrine imposes liability on the owner of a vehicle for its negligent operation by one who is using the vehicle with the express or implied consent of the owner for purposes of the business or pleasure of the owner’s family. Staroba v. Heitkamp, 338 N.W.2d 640, 641 (N.D.1983). The doctrine, adopted by this Court more than 80 years ago, is founded on the theory that the driver of a family car, in pursuit of recreation or pleasure, is engaged in the owner’s business and is viewed as either the agent or servant of the owner. Schobinger v. Ivey, 467 N.W.2d 728, 729 (N.D.1991). The respon-deat superior theoretical basis for the doctrine is a fiction created in furtherance of the public policy of giving an injured party a cause of action against a financially responsible defendant. Michaelsohn v. Smith, 113 N.W.2d 571, 573-74 (N.D.1962), overruled on other grounds, Schobinger, 467 N.W.2d at 730. Under the family car doctrine, the owner of the vehicle is not liable for his own negligence, but is vicariously liable for the tortious acts of the driver. Nelson v. Johnson, 1999 ND 171, ¶ 8, 599 N.W.2d 246.
[¶ 14] Whether the family car doctrine applies depends on the totality of the circumstances. See Erdmann v. Thomas, 446 N.W.2d 245, 250 (N.D.1989); Lauritsen v. hammers, 161 N.W.2d 804, 805-11 (N.D.1968). While ownership of the vehicle by the head of the household is a circumstance strongly favoring application of the doctrine, see Staroba, 338 N.W.2d at 644, to be liable under the family car doctrine, the head of the household must furnish, but need not own, the vehicle for the use, pleasure, and business of himself or a member of his family. Herman v. Magnuson, 277 N.W.2d 445, 458 (N.D.1979).
While the element of furnishing does not hinge on legal ownership, we cannot state exhaustively the complete range of factual patterns sufficient to satisfy this requirement. Important considerations are who paid for the car, who had the right to control the use of the car, the intent of the parties who bought and sold the car, the intent of the parents and the child as to who, between them, was the owner of the car, to whom the seller made delivery of the car, who exercised property rights in the car from the date of its purchase to the date of the accident, and any other evidence that bears on the issue of who is the owner in fact.
Id. at 459 (footnote omitted).
[¶ 15] The issue of whether the family car doctrine applies is a question of fact for the trier of fact to decide. See Herman, 277 N.W.2d at 459; Lauritsen, 161 N.W.2d at 809. A trial court’s findings of fact will not be set aside unless they are clearly erroneous. N.D.R.Civ.P. 52(a). A finding of fact is clearly erroneous only if it is induced by an erroneous view of the law *395or, although there is some evidence to support it, on the entire record we are left with a definite and firm conviction a mistake has been made. Hamers v. Guttormson, 2000 ND 93, ¶4, 610 N.W.2d 758.
[¶ 16] The trial court found Curtis Tufty was the “sole owner of the Toyota, or he was a co-owner, joint owner, or owner in common” with his son, and he “furnished” the Toyota to his son “as a family auto.” We conclude the trial court’s findings are not clearly erroneous, and support its ultimate finding the family car doctrine applies.
[¶ 17] Although the Toyota was not actually registered in the name of either Curtis or Christopher Tufty, Curtis Tufty had been previously listed as the registered owner of the Pontiac on the Farm and City policy, and the Toyota was intended to be a replacement vehicle for the Pontiac. Curtis Tufty purchased the Toyota with a check, in the same manner as he had purchased the Pontiac. The trial court was not required to accept Christopher Tufty’s testimony he paid his father for the Toyota or the Pontiac. His testimony was ambiguous about how he paid his father. At one point he said the money came from his savings account, and he later testified he paid his father with cash kept in his bedroom. There is evidence Christopher Tufty did not have enough money in his savings account to purchase either the Toyota or the Pontiac, and a trier of fact could find it unlikely Christopher Tufty kept that much cash in his bedroom.
[¶ 18] Apart from writing the checks for the Pontiac and Toyota, Curtis Tufty paid for the insurance on the vehicles and helped Christopher Tufty pay for other car-related expenses by giving him access to a charge account at an auto parts store. Curtis Tufty also testified he paid for some of the fuel for the vehicles through a family account at a grocery store. Christopher Tufty testified he would have obeyed his father if he had told him to not drive the Toyota, indicating Curtis Tufty had the right to control his son’s use of the vehicle, even if that control was not exercised.
[¶ 19] The totality of the circumstances supports the trial court’s findings that Curtis Tufty had an ownership interest in the Toyota and furnished the vehicle for Christopher Tufty’s use as a family vehicle. We conclude the trial court did not err in ruling the family car doctrine applied in this case.
Ill
[¶ 20] AMCO argues the trial court erred in ruling its insurance policy provided coverage]
[¶ 21] The interpretation of an insurance policy is a question of law, fully renewable on appeal, and we review the trial court’s interpretation by independent-, ly construing and examining the policy. Close v. Ebertz, 1998 ND 167, ¶ 12, 583 N.W.2d 794. We look first to the language of the policy as a whole, and if the language is clear on its face, there is no room for construction. DeCoteau v. Nodak Mut Ins. Co., 2000 ND 3, ¶ 19, 603 N.W.2d 906. Terms of an insurance policy are given their ordinary, usual and commonly accepted meaning. Center Mut. Ins. Co. v. Thompson, 2000 ND 192, ¶ 14, 618 N.W.2d 505. Whether an insurance policy is ambiguous is also a question of law for the court to decide, and an ambiguity exists when good arguments can be made for two contrary positions about the meaning of a term in the document. Fisher v. American Family Mut. Ins. Co., 1998 ND 109, ¶ 5, 579 N.W.2d 599.
A
[f 22] AMCO argues the trial court erred in ruling Curtis Tufty was “using” the Toyota at the time of the accident within the meaning of its insurance policy.
[¶ 23] The insuring agreement of the AMCO policy provides “[w]e will pay damages for ‘bodily injury’ or ‘property *396damage’ for which any ‘insured’ becomes legally responsible because of an auto accident.” An “[i]nsured” is defined to mean “[y]ou and any ‘family member’ for the ownership, maintenance or use ... of any auto.... ” The AMCO policy excludes liability coverage “for the ownership, maintenance or use of ... [a]ny vehicle, other than ‘your covered auto,’ which is ... owned by an[y] ‘family member;’ or ... furnished or available for the regular use of any ‘family member.’ ” However, this exclusion “does not apply to your maintenance or use of any vehicle which is ... owned by a ‘family member;’ or ... furnished or available for the regular use of a ‘family member.’ ”
[¶ 24] The McPhees argue the Toyota qualifies as “any auto,” and by making the Toyota available for his son, Curtis Tufty furthered the family purpose by providing mobility and independence to family members, thereby constituting a “use” by Curtis Tufty of the Toyota at the time of the accident within the meaning of the AMCO policy. The trial court agreed, concluding “because Curtis and Debra furnished the Toyota to Christopher as a family automobile, they were ‘using’ the vehicle within the meaning of the AMCO policy at the time of the accident.” AMCO argues this is an erroneous construction of the policy, because it strains the plain and ordinary meaning of the term “use,” and because the Toyota was not being used for any purpose of Curtis Tufty at the time of the accident.
[¶ 25] The term “use” has been described as “the general catch-all of the insuring clause, designed and construed to include all proper uses of the vehicle not falling within one of the previous terms of definition [ownership; maintenance].” 6B Appleman, Insurance Law and Practice § 4316, at pp. 341-42 (1979) (footnote omitted). “Use” is “given its ordinary meaning. It denotes the employment of the automobile for some purpose of the user.” 8 Couch on Insurance § 111:35, at p. 111-61 (3rd ed.1997) (footnotes omitted). See also Hanneman v. Continental Western Ins. Co., 1998 ND 46, ¶ 56 n. 3, 575 N.W.2d 445 (Meschke, J., concurring and dissenting). In the context of insurance law, courts have usually given the term “use” a broad, rather than narrow, construction. See, e.g., Woodrich Construction Co. v. Indemnity Ins. Co., 252 Minn. 86, 89 N.W.2d 412, 418 (1958); Brown v. Kennedy, 49 N.E.2d 417, 420 (Ohio App. 1942) aff'd, 141 Ohio St. 457, 48 N.E.2d 857 (1943).
[¶ 26] In Norgaard v. Nodak Mut. Ins. Co., 201 N.W.2d 871, 874 (N.D.1972), this Court said “ ‘use’, to result in liability on the part of the insurance carrier, must be such use as arises out of the inherent nature of the automobile.” See also Transameñca v. Fanners Ins. Exch., 463 N.W.2d 641, 643 (N.D.1990). In Persellin v. State Auto. Ins. Ass’n, 75 N.D. 716, 32 N.W.2d 644 (1948), this Court held “[a] person, using an automobile to entertain friends and transport them from place to place, who turns over manual operation of the automobile to one of his guests but remains in the automobile with full power of control over its use, continues to be the person using such automobile.” It is therefore clear in this jurisdiction a person need not actually operate a vehicle to “use” it. See, e.g., Manock v. Donley, 139 N.W.2d 391, 392 (N.D.1966); Kadrmas v. Mudna, 107 N.W.2d 346, 348 (N.D.1961).2
[¶ 27] Most courts appear to have taken the view an insured need not be physi-*397eally present in the vehicle to be using the vehicle for purposes of insurance coverage. See, e.g., American Auto. Ins. Co. v. Taylor, 52 F.Supp. 601, 603 (N.D.Ill.1943) (construing Illinois law); Hertz Corp. v. Amerisure Ins. Co., 627 So.2d 22, 23 (Fla. App.1993); BATS, Inc. v. Shikuma, 1 Haw.App. 231, 617 P.2d 575, 577-78 (1980); Royal Indem. Co. v. Shull, 665 S.W.2d 345, 347 (Mo.1984); Hertz Corp. v. Government Employees Ins. Co., 250 A.D.2d 181, 683 N.Y.S.2d 483, 487 (N.Y.App.Div.1998). But see Apcon Corp. v. Dana Trucking, Inc., 251 Ill.App.3d 973, 191 Ill.Dec. 216, 623 N.E.2d 806, 811 (1993) (to constitute a use or be a user under insurance policy, “one must be in operation of the vehicle”). In deciding whether a vehicle was “used” by an insured when a third party was actually driving the insured’s vehicle, courts have analyzed two factors: (1) whether the vehicle was under the supervision and control of the insured; and (2) whether the vehicle was being operated to serve a purpose of the insured. Shikuma, 617 P.2d at 577; Government Employees, 683 N.Y.S.2d at 487. See also Johnson, 438 S.E.2d at 872 (“Inherent in the concept of ‘use’ is the exercise of control over the vehicle”).
[¶ 28] The McPhees principally rely on Brabender v. Northern Assur. Co. of America, 65 F.3d 269 (2nd Cir.1995), and Rogers v. MFA Mut. Ins. Co., 262 Ark. 55, 554 S.W.2d 327 (1977), to support their argument Curtis Tufty was using the Toyota at the time of the accident. In Brabender, 65 F.3d at 270, a mother asked a part-time nanny who resided with the family to bring her son to a nail salon so she could be with the child. When the nanny discovered her car would not start, the mother’s daughter agreed to let the nanny use her car for the errand. Id. While driving the child back from the nail salon in the daughter’s car, the nanny was involved in an accident, and the child was seriously injured. Id. at 271. The son, through his father, sued several persons involved, including the mother and the sister. Id. The mother brought a declaratory judgment action against her insurance company to determine coverage. Id. Relying on an exception to an exclusion in the insurance policy virtually identical to the policy in this case, which provided the exclusion did not apply to “your maintenance or use” of any vehicle owned by a family member, the mother argued the term “your ... use” included physical operation by the insured’s employee, the nanny, at the direction of and for the purposes of the insured. Id. at 272. The court noted none of the cases it reviewed had “given quite as broad a meaning as [the mother] advocates in this case,” but concluded the term “your ... use” was ambiguous because both constructions advocated by the parties were equally reasonable. Id. at 272-73. Applying a New York rule of insurance contract construction requiring resolution in favor of the insured and against the insurer where there is an ambiguity as to the existence of coverage, the court ruled the accident was covered by the mother’s insurance policy. Id. at 273.
[¶ 29] Brabender is distinguishable on its facts. Christopher Tufty was not Curtis Tufty’s employee. Moreover, unlike the specific directive by the mother to the nanny in Brabender to bring the child to the mother, Christopher Tufty was not using the Toyota at the specific direction of his father. The McPhees’ argument that a generalized family purpose of providing mobility and independence to family members constitutes a “use” within the meaning of the insurance policy stretches Brabender far beyond its limits.
[¶ 30] In Rogers, 554 S.W.2d at 328, a father was awarded custody of his daughter in a divorce proceeding, and the father permitted the daughter to visit her mother. On one visit, the daughter collided with another vehicle while she was driving her mother’s car, injuring the other driver. Id. The other driver sued the father, claiming he was liable under a statute imputing the negligence of a minor to the person who had signed the minor’s driver’s license *398application. Id. at 328-30. The parties stipulated the daughter was not on a personal or business mission for the father at the time of the collision. Id. at 328. The policy in Rogers provided coverage for the insured’s “actual use” of a non-owned auto, and the issue was whether the insured father was engaged in the actual use of a non-owned auto when he gave his daughter permission to use the mother’s car. Id. at 330. The court interpreted the term “actual use” to “include that use which is imputed to an individual through what is known in law as vicarious liability,” and ruled the statute “places a parent in the position of an actual user of an automobile any time the parent knowingly permits a minor to drive an automobile upon a highway,” thereby making the father “a user of the non-owned automobile within the meaning of the policy at the time of the collision....” Id.
[¶ 31] Rogers is distinguishable on its facts and because it is based on an Arkansas vicarious liability statute imputing liability to the father. The Rogers court held, because the father permitted the daughter to drive, the statute itself placed the parent in the position of an actual user within the meaning of the policy. In this case, the McPhees place no reliance on N.D.C.C. § 39-06-09 to impute statutory liability to the Tuftys. Rather, the McPhees rely on the family car doctrine. Although liability under the family car doctrine is vicarious in nature, this Court has not imposed liability on an insurer based solely on the family car doctrine without regard to the coverage defined by the insurance policy. See, e.g., Midwest Cas. Ins. Co. v. Whitetail, 1999 ND 133, ¶¶ 2-4, 11, 596 N.W.2d 341. Liability under the family car doctrine does not ipso facto establish a “use” of a vehicle under the terms of an insurance policy. See generally Allstate Ins. Co. v. Brown, 920 F.2d 664, 670 (10th Cir.1990); Rogers, 554 S.W.2d at 331 (Fogleman, J., dissenting) (“But not every situation in which there might be statutorily imposed vicarious liability makes the use of a motor vehicle actual use by the one held vicariously liable.”).
[¶ 32] The term “use” is not ambiguous. The trial court found the Tuftys “had the authority to control Christopher’s conduct in 1994, including whether he drove any vehicle, including the Pontiac and the Toyota Corolla.” Although this finding arguably satisfies the first factor for determining whether a vehicle was “used” by an insured when a third-party is actually operating the insured’s vehicle, the second factor is whether the vehicle was being operated to serve a purpose of the insured. The trial court found the Tuftys were “using” the vehicle at the time of the accident within the meaning of the AMCO policy because they “furnished the Toyota to Christopher as a family automobile.” We conclude operating a vehicle furnished to a family member for unrestricted use as a family automobile is insufficient, as a matter of law, to constitute operation of the vehicle to serve a purpose of the insured within the meaning of the insurance policy.
[¶ 33] The exception to the exclusion in the AMCO policy is obviously meant to provide coverage in those temporary situations in which the named insured must use a vehicle owned by another family member, or furnished or available for the regular use of any family member, and, as such, is simply an extension of the coverage which is provided when the .named insured engages in the permissive use of vehicles owned by other third parties. See, e.g., 6C Appleman Insurance Law and Practice § 4455, at p. 552 (1979) (“The purpose of a ‘drive other cars’ clause is to provide coverage to an insured, and others for the occasional and infrequent driving of vehicles other than those insured by the policy.”) If we were to accept the McPhees’ construction of the exception to the exclusion, the exclusion would be rendered meaningless and coverage would exist in all cases in which the named insured could be held liable for another’s negligence while driving a vehicle owned by or furnished for the regular *399use of a family member, despite the express exclusion of coverage for the “use of ... [a]ny vehicle, other than ‘your covered auto,’ which is ... owned by ... or ... furnished or available for the regular use of any ‘family member.’ ” We construe insurance contracts as a whole to give meaning and effect to each clause, if possible. Ziegelmann v. TMG Life Ins. Co., 2000 ND 55, ¶ 6, 607 N.W.2d 898.
[¶ 34] We will not strain the definition of an undefined term to provide coverage for an insured. Ziegelmann, at ¶ 6. In this case, Christopher Tufty was not running an errand for his father or mother when he drove the Toyota at the time of the accident. The Toyota was not being “used” for any specific purpose of Curtis or Debra Tufty. Christopher Tufty was using the vehicle for his own purposes. We conclude the trial court erred in ruling the Tuftys were using the vehicle at the time Christopher Tufty was involved in the accident.
B
[¶ 35] AMCO also argues the trial court erred in ruling the Toyota was a “newly acquired vehicle” covered under the insurance policy.
[¶ 36] The AMCO policy provides coverage for “covered auto[s].” In addition to vehicles shown in the declarations, “[y]our covered auto” is defined to include:
2. Any of the following types of vehicles on the date you, or a corporation of which you are the sole owner, become the owner:
a. a private passenger auto: ...
This provision (J.2.) applies only if:
a. you, or a corporation of which you are the sole owner, acquire the vehicle during the policy period;
b. you ask us to insure it within 30 days after you, or a corporation of which you are the sole owner, become the owner;....
[¶ 37] The McPhees argue the Toyota qualifies as a newly acquired vehicle because Curtis Tufty owned the Toyota and satisfied the notice requirement when Debra Tufty contacted Orn to inform him of the accident. AMCO argues the Tuftys did not own the Toyota, and even if they did, they did not make a sufficient request within 30 days of purchase to have the Toyota added to the AMCO policy. The trial court found the Tuftys owned the vehicle, and the “report of the accident and conversation with the agent by Debra Tufty on November 27, 1994, was a request for coverage under both Farm & City and AMCO policies.” The court ruled the “newly acquired clause in the AMCO policy is ambiguous and must therefore result in coverage even though the Tuftys did not make a specific request for AMCO coverage on the vehicle within thirty days of the purchase.”
[¶ 38] We reject AMCO’s argument the trial court erred in ruling Curtis Tufty was the “owner” of the Toyota within the meaning of the insurance policy. Ownership may occur in various forms. See, e.g., Rathe v. S-N-Go Stores, Inc., 308 N.W.2d 872, 875 (N.D.1981); N.D.C.C. §§ 47-01-01, 47-02-01 to 47-02-08. Registration of the vehicle is not determinative. See Green v. Connecticut Fire Ins. Co., 61 N.D. 376, 381, 237 N.W. 794, 796 (1931). Courts have held the term “ownership” necessarily comprehends both sole and joint ownership. See American Indem. Co. v. Davis, 260 F.2d 440, 442 (5th Cir.1958) (construing Georgia law); Dolan v. Welch, 123 Ill.App.3d 277, 78 Ill-Dec. 675, 462 N.E.2d 794, 796-97 (1984); Quaderer v. Integrity Mut. Ins. Co., 263 Minn. 383, 116 N.W.2d 605, 608-09 (1962); Annot., Construction and application of “automatic insurance” or “newly acquired vehicle” clause (“replacement,” and “blanket,” or “fleet” provisions) contained in automobile liability policy, 39 A.L.R.4th 229, § 6[a] (1985). The trial court found Curtis Tufty had an ownership interest in the Toyota, and we have held that finding *400is not clearly erroneous. The trial court did not err in ruling Curtis Tufty was also the “owner” of the Toyota for purposes of the insurance policy.
[¶ 39] AMCO argues there was no request for coverage for the Toyota within 30 days of its acquisition in order for the newly acquired vehicle coverage to become effective. Coverage of a newly acquired vehicle is automatic if notice is given within 30 days of its acquisition. See Nodak Mut. Ins. Co. v. Loeffler, 225 N.W.2d 290, 293 (N.D.1974).
[¶ 40] We reject AMCO’s suggestion the Tuftys were required to notify AMCO directly at its home office of the newly acquired vehicle, and merely notifying Orn was insufficient to comply with the terms of the insurance policy. The policy does not dictate any specific form of notice. Orn was AMCO’s agent as a matter of law. See Ingalls v. Paul Revere Life Ins. Group, 1997 ND 43, ¶ 21, 561 N.W.2d 273; N.D.C.C. § 26.1-26-06. AMCO’s argument that the Tuftys could not comply with the policy by simply conveying the information to Orn is without merit. See Western Mut. Ins. Co. v. Wood, 246 Iowa 1143, 70 N.W.2d 563, 565 (Iowa 1955); Quaderer, 116 N.W.2d at 609-10; Annot., 39 A.L.R.4th 229, at § 25.
[¶ 41] Although the method of notice was adequate, we conclude, under the circumstances of this case, the information Debra Tufty conveyed to Orn was insufficient as a matter of law to constitute notice of a newly acquired vehicle under the AMCO policy. The trial court noted “the Tuftys did not make a specific request for AMCO coverage on the vehicle within thirty days of the purchase,” but found the “report of the accident and conversation with the agent by Debra Tufty on November 27, 1994, was a request for coverage under both Farm & City and AMCO policies.” The undisputed evidence in the record does not support this finding.
[¶ 42] When the Tuftys asked Orn to have Christopher Tufty and the Pontiac added to their AMCO policy, Orn, upon discovering the teenager’s poor driving record, specifically informed them he was not eligible for standard, coverage with AMCO, based on its underwriting guidelines. Orn then obtained separate high risk, coverage for Christopher Tufty from Farm and City. Under these circumstances, the only reasonable inference to be drawn from Debra Tufty’s call to Orn informing him Christopher Tufty had acquired a new vehicle and had been involved in an accident is that she was requesting coverage under the Farm and City policy. Orn responded accordingly, immediately sending a loss notice to Farm and City, but not to AMCO.
[¶ 43] We do not suggest an insured must request from an insurance agent coverage under a specific policy to satisfy the notice requirements of a newly acquired vehicle clause in all circumstances. We recognize vehicle owners often have several vehicles and several insurance policies, and insureds rely on insurance agents to take appropriate steps regarding their insurance needs. But here, neither the insureds nor the agent had any intention of adding, or even the expectation they could add, the Toyota as a vehicle covered under the AMCO policy. Under these circumstances, the insureds must impart more information to the agent than the acquisition of a new vehicle and its involvement in an accident.
[¶ 44] We conclude the newly acquired vehicle clause is not ambiguous, and the trial court’s finding Debra Tufty’s communication with Orn constituted a request for coverage under both policies is clearly erroneous. Because there was no compliance with the notice requirement, the Toyota was not covered under the newly acquired vehicle clause of the AMCO policy. The trial court erred in ruling the AMCO policy provided coverage in this case.
IV
[¶ 45] The amended judgment is reversed.
[¶ 46] Dale V. Sandstrom.

. Under Miller v. Shugart, 316 N.W.2d 729 (Minn. 1982), an insured defendant may settle a plaintiffs claims and stipulate judgment may be collected only from the proceeds of an insurance policy. See Medd v. Fonder, 543 N.W.2d 483, 485 (N.D.1996). The stipulated judgment is not conclusive on the insurer, and the plaintiff judgment creditor has the burden of showing the settlement was reasonable and prudent. See Rebel v. Nodak Mut. Ins. Co., 1998 ND 194, ¶5 n. 1, 585 N.W.2d 811.

. AMCO argues, because this is not a permissive use case, cases addressing whether a driver qualifies as a permissive user under a liability insurance policy have no application to this case. Although the outcome of a permissive use case may be controlled by separate principles, we believe how the term "use" is defined in those cases is nonetheless instructional. See Johnson v. State Farm Mut. Auto. Ins. Co., 190 W.Va. 526, 438 S.E.2d 869, 872 n. 4 (1993). Because the term "use” is recognized as the general catch-all of the insuring clause, we think it is appropriate to consider how the term has been defined in cases dealing with various types of coverage issues. Id.