Court Opinion

ID: 9777431
Source: CourtListenerOpinion
Date Created: 2023-08-29 20:11:04.272626+00
Date Added: 2024-06-11T07:32:54.007830
License: Public Domain

KEITH, Justice
(dissenting).
I respectfully dissent. The statute, Tex.Ins.Code Ann. art. 5.06-1 (Supp.1974-75) required defendant to include the Uninsured Motorists Coverage in its policy of automobile liability insurance which it issued to plaintiff’s mother unless she rejected the coverage. By a valid Board order, which we find in our record, the rejection must be *744in writing.1 Plaintiff’s mother did not reject the UM coverage. Instead, the policy was written with the coverage; and, more importantly, defendant collected and retained the maximum premium which it was authorized by law to receive for full, unlimited, and unrestricted UM coverage.
The Form 119 which was signed by plaintiff’s mother was approved by the State Board of Insurance more than a quarter of a century before Texas adopted the UM statute. Its validity has been upheld as to the liability portion of an automobile insurance policy. See, e. g., Western Alliance Insurance Company v. Albarez, 380 S.W.2d 710 (Tex.Civ.App.-Austin 1964, writ ref’d n. r. e.), and Travelers Indemnity Co. v. Columbus State Bank, 442 S.W.2d 479 (Tex.Civ.App.-Houston [1st Dist.] 1969, no writ). Neither case involved the UM coverage in an automobile liability policy.
Under the cited cases, defendant succeeded in making plaintiff an uninsured motorist when he was driving his mother’s insured vehicle with her consent. This was the only effect of the rider, Form 119. I do not subscribe to the holding that Form 119, which did not even mention the UM coverage, was a rejection of such coverage.
Defendant, with the full UM premium in its coffers, now says, in effect, that there was a partial, limited, or restricted UM coverage on Mrs. Greene’s insured vehicle. In Fidelity & Casualty Company of New York v. Gatlin, 470 S.W.2d 924, 927 (Tex.Civ.App.-Dallas 1971, no writ),2 the court based its holding upon language apropos to this case:
“Our law was obviously enacted by our Legislature for the benefit of the innocent victim of a financially irresponsible motorist. It should be liberally construed to fully accomplish that purpose. . The statute is plain in its direction that each policy of insurance issued must contain uninsured motorist protection in minimum amounts, without qualification, and it necessarily follows that any attempt on the part of an insurer to limit the effect of such provision must be held to be in derogation of the statute itself. It would be unconscionable to permit insurers to collect a premium for a coverage which they are required by statute to provide, and then to avoid payment of a loss because of language of limitation devised by themselves.” (emphasis supplied)
See also: Bogart v. Twin City Fire Insurance Company, 473 F.2d 619, 625 (5th Cir. 1973); 3 Kemp v. Fidelity & Casualty Co. of New York, 504 S.W.2d 633, 635 (Tex.Civ.App.-Eastland 1973) writ ref’d n. r. e. per curiam, 512 S.W.2d 688 (Tex.1974).
Defendant has misconceived the coverage afforded under the UM portion of the policy of insurance. While Form 119 made Oran Greene an uninsured motorist when he was operating the insured vehicle, it did not take him out of the UM coverage which defendant had assumed when it issued the policy to the named insured. In Elledge v. Warren, 263 So.2d 912, 918 (La.Ct.App.1972, writ ref’d),4 the court reached the nexus of the coverage question, saying:
“There is no requirement in the statute that the insured have any relation, at the time of the accident, with any vehicle he owns and that is insured with the insurer. The uninsured motorists protection covers the insured and the family *745members while riding in uninsured vehicles, while riding in commercial vehicles, while pedestrians or while rocking on the front porch, [emphasis supplied]
‡ ‡ ‡ ‡ ‡ 5j£
“The only relation that the insured must have to automobiles at the time of the accident is that he be injured by an automobile driven by an uninsured motorist.
⅜ ⅜ ⅜ ⅜ ⅜ ⅝
“The purpose of the statute is to protect completely, those willing to accept its protection, from all harm, whatever their status — passenger, driver, pedestrian — at the time of injury, produced by uninsured motorists. The only restrictions are that the plaintiff, must be an insured, the defendant motorist uninsured, and that plaintiff be legally entitled to recover.”
Other states have faced the same question now presented by our record. See A. Widiss, A Guide to Uninsured Motorist Coverage § 2.13, at 34-35 (1969).
The only case remotely in point mentioned in the majority opinion is that of California Casualty Indemnity Exchange v. Steven, 5 Cal.App.3d 304, 85 Cal.Rptr. 82 (1970), where the defendant’s contention raised here was rejected with emphasis. The California statute required the UM coverage unless the named insured deleted the provision in writing — just as does our Board rule in Texas. The California policy contained a rider, similar to the Form 119 in our case, which excluded any coverage while the insured vehicle was being operated by the named insured’s son. There, as here, the insurer pleaded the exclusion in bar to a recovery by the son under the UM coverage, but the contention was overruled.
The court there rejected the insurer’s argument, which is also urged upon us in slightly different language, “that ‘the language used in an insurance contract must be given its plain and ordinary meaning, and when it is unambiguous it must be given effect.’ ” (85 Cal.Rptr. at 83) 5 The court continued, in language which I adopt as applicable to the case at bar, noting only that the requirement for rejection in writing is by Board rule instead of statute:
“The Legislature has declared it to be the public policy of this state that no automobile liability insurance policy shall fail to include uninsured motorist coverage unless the insurer and the named insured ‘by agreement in writing, delete the provision covering damage caused by an uninsured motor vehicle.’ Because the provision of such coverage is a matter of public policy, a claim of waiver thereof is not to be determined simply by reference to the rules which courts otherwise apply to determine the intent of contracting parties. Deletion of the coverage required by the statute can be effected only by an express ‘agreement in writing, deleting] the provision covering damage caused by an uninsured motor vehicle.’ ... A general exclusion of coverage for all drivers under age 25 has been held not to be an effective waiver of uninsured motorist coverage .... [bracketing in text]

“Waiving ‘application of the statute’ must, of course, delete all uninsured motorist coverage. Here the endorsement did not purport to delete all uninsured motorist coverage, even as to David [the minor son]. He would, under its terms, still be covered if injured by an uninsured motorist while a passenger or a pedestrian. Such ‘piecemeal whittling *746away of liability’ is void as against public policy.” (citations omitted, emphasis in text, bracketed material inserted) 6
The California case quoted from so copiously is consistent with the Texas approach to the UM coverage; and, in my opinion, is consistent with the public policy enunciated by the Legislature. So holding, I would sustain plaintiff’s first four points.
I see yet another reason why the majority has fallen into error in its holding in this case. Under our statutory law the UM coverage is made standard and uniform throughout the state, both as to the persons covered and the amounts recoverable for such persons’s injury or death in an automobile accident caused by an uninsured motorist. Tex.Ins.Code Ann. art. 5.-06 (1963). The Board, exercising the authority conferred upon it by statute, has approved a standard policy provision with UM coverage.
This standard coverage is not subject to variance, exclusion, or reduction by the individual insurers. Once it is determined (as has the majority in this case) that a reduction less than total rejection of the statutory coverage can be “negotiated” by the insurer and the insured, the UM protection is subject to being whittled away in an inconsistent manner.
Moreover, if we allow, as has been done in this case, a deviation of the full coverage for the persons statutorily intended to be covered, by premium negotiation between the insurer and the insured, we go a long way in destroying the statutory objective. Under the statute, Tex.Ins.Code Ann. art. 5.03, insurers are forbidden to vie with one another for automobile liability insurance business by “negotiating” a reduction of such coverage with insureds by excluding certain occupants or operators of the insured’s automobile. In this instance, the majority says that defendant did not issue a policy of insurance which afforded full UM coverage to its named insured, and furnished her something less than the statutory coverage. If this be true, and the conclusion of the majority is inescapable, the defendant charged and collected a premium in excess of that authorized by law for the coverage it did extend. Art. 5.03.
If the courts are to sanction exclusion of one of the persons entitled to the coverage under the statute and standard policy, we could permit just as effectively a reduction of the potential liability of the insurer if a monetary reduction of the 10/20000 limits of the coverage had been “negotiated” originally between the parties. Neither is permitted under the statute.
Additionally, I have serious doubts that the insured actually intended to exclude her son from the uninsured motorist coverage while driving her automobile, but included him when he was a passenger therein. Undoubtedly, the insured was willing to, and did agree with the defendant not to provide liability insurance for the general public for injuries inflicted by her son while driving her automobile. Form 119 did precisely that. It seems inconceivable to me that the insurer did not choose more apt words for her to use in “rejecting” complete UM coverage. While I claim no expertise in the drafting of insurance contracts, it would appear that, at the very least, a passing mention would be made of the UM coverage in such a “rejection.” While more apt words can probably be found to express such an intention even more clearly, a minimum “rejection” would include the language I *747have appended in the following footnote.7 In short, I reject the majority’s holding that Form 119 served the dual purpose of making plaintiff an uninsured motorist while driving the car — and—deprived him of UM coverage. I concede the first but deny the second.
I am unpersuaded by the authorities cited by the majority in support of the holding that plaintiff was not covered by the UM portion of the policy in issue. Three of the four California cases cited by the majority did not even involve the UM coverage.8 Only California Casualty Indemnity Exchange v. Steven, supra, from which I have quoted so liberally earlier, involves the UM coverage. Furthermore, as I have already noted, the two Texas cases (Albarez and Columbus State Bank) involved only public liability coverage, not UM coverage.
Finally, I confess that I am at a loss to explain the majority’s reliance upon M. F. A. Mutual Ins. Co. v. Wallace, 245 Ark. 230, 431 S.W.2d 742 (1968). That case simply holds that the “ ‘other insurance’ ” in the UM coverage is valid and is not “repugnant” to the Arkansas UM statute. (431 S.W.2d at 744) There is a later case which I prefer to follow: American Liberty Insurance Company v. Ranzau, 481 S.W.2d 793, 797 (Tex.1972), “precluding the use of ‘other insurance’ clauses” in such policies. While it is proper to say that four of our more eminent jurists seemed to agree with the Arkansas interpretation of the UM statute, I readily accept the views of Justice Steakley speaking for the majority in Ranzau. The A. L. R. citation does not speak to the problem under consideration.
The key to the determination made by the majority is: “Public policy dictates the allowance of partial rejection of such [UM] coverage in order to allow insured in that situation to secure insurance they can afford”. This permits shopping for insurance “bargains,” both as to rates and as to coverage. Both are presently prohibited by clear and unambiguous statutes. If “negotiated” premiums or less than full statutory coverage is to be permitted in this area of the insurance industry, it should be done by the Legislature and not the Courts. Kemp v. Fidelity & Casualty Co. of New York, supra (512 S.W.2d at 690).
It necessarily follows that I am likewise in disagreement with the concurring opinion which, by judicial fiat, makes an interim ad hoc legislative determination of what is good for the public at large in the field of UM coverage. This is a plain invasion of the powers entrusted to the Legislature and is not properly a judicial function. Justice Norvell, speaking for the Court in State v. Reyna, 160 Tex. 404, 333 S.W.2d 832, 838 (1960), used language which I find peculiarly appropriate here: '
“Actual or supposed deficiencies in our school laws, election code, [I add, Insurance Code], or jurisdictional regulations governing appeals in civil cases will not justify a court’s excursion beyond its *748proper sphere in order to plug a hole or cure a supposed defect in the legislative scheme of things.”
Tex. Const. art. II, § 1, Vernon’s Ann. St., forbids this court exercising legislative power. While we are authorized to exercise a portion of the judicial power of the state, it is confined to an ascertainment and enforcement of the law adopted by the Legislative Branch. It is for the Legislature to prescribe what the law shall be in future cases arising under the statutes which it may enact. Not only is such a course required by the Constitution, “the legislative power is much more flexible and amenable to particular needs and detailed requirements than is the judicial process.” Watkins v. Southcrest Baptist Church, 399 S.W.2d 530, 533 (Tex.1966). It is sufficient to call the matter to the attention of the Legislature, which meets within a few weeks; it is not proper to exercise a legislative function. See Kemp v. Fidelity & Casualty Co. of New York, supra.
Both parties moved for summary judgment — the defendant sought and received a summary judgment that plaintiff was not within the UM coverage of the policy, and plaintiff sought, but was denied, a partial summary judgment that he was so covered, with the amount of his recovery, if any, dependent upon a trial on the merits. Under these circumstances, I would reverse the judgment of the trial court and render judgment for plaintiff as prayed for below, i. e., that Form 119 attached to the policy before us was not a valid rejection of the UM coverage and that plaintiff is entitled to all of the benefits of the UM provision in such policy. State Farm Mut. Auto. Ins. Co. v. Pan American Ins. Co., 437 S.W.2d 542, 545 (Tex.1969); Tobin v. Garcia, 159 Tex. 58, 316 S.W.2d 396, 400 (1958). But, since plaintiff sought only a partial summary judgment, the judgment of the trial court would be reversed and the cause remanded for trial on the merits consistent with the views herein expressed.

. Order No. 9709, Minutes, State Board of Insurance, August 9, 1967.

. Gatlin was cited with approval in American Liberty Insurance Company v. Ranzau, 481 S.W.2d 793, 796 (Tex.1972).

. Our Supreme Court has expressly approved the holding in Bogart. See Westchester Fire Insurance Company v. Tucker, 512 S.W.2d 679, 684 (Tex.1974).

. Elledge was cited with approval by our Supreme Court in Westchester Fire Insurance Company v. Tucker, supra fn. 3 (512 S.W.2d at 685).

. The California eases cited are in accord with the general rule applicable in Texas. See, e. g., Republic National Life Insurance Co. v. Spillars, 368 S.W.2d 92, 94, 5 A.L.R.3d 957 (Tex.1963). See also, 32 Tex.Jur.2d, Insurance § 54, at 102, et seq. (1962).

. Florida, with a similar statute, seems to have reached the same result as did the California court in Steven, supra. See, e. g., First National Insurance Co. of America v. Devine, 211 So.2d 587 (Fla.App.1968); Butts v. State Farm Mutual Automobile Ins. Co., 207 So.2d 73 (Fla.App.1968). But, cf. Southeast Title and Insurance Co. v. Thompson, 231 So.2d 201 (Fla.Sup.1970).

. “In accordance with the provisions of Article 5.06 — 1 of the Texas Insurance Code, which permits the insured named in the policy to reject the Uninsured Motorists (Family Protection) Coverage, the undersigned insured does hereby reject such insurance, being the insurance provided for protection of persons insured under this policy who would legally be entitled to recover damages from the owners or operators of uninsured motor vehicles because of bodily injury, sickness or disease, including death resulting therefrom.”

. Abbott v. Interinsuranee Exchange of Auto. Club. of So. Cal., 260 Cal.App.2d 528, 67 Cal.Rptr. 220 (1968), involved the public liability coverage in the policy in question. The same issue confronted the court in Wildman v. Government Employees’ Insurance Co., 48 Cal.2d 31, 307 P.2d 359 (1957). The third case, Interinsurance Exch. of Auto. Club v. Ohio Cas. Ins. Co., 58 Cal.2d 142, 23 Cal.Rptr. 592, 373 P.2d 640 (1962), involved two policies, one of garage liability, the other of public liability.