Court Opinion

ID: 9744642
Source: CourtListenerOpinion
Date Created: 2023-08-26 22:11:19.996834+00
Date Added: 2024-06-11T07:24:50.687785
License: Public Domain

BARTEAU, Judge,
dissenting.
I respectfully dissent because I do not agree that the insurance policy contains a choice of law provision; consequently, under the "most intimate contacts" test, Indiana law applies and Farmers has a right to set off the amount it owes to Brown under the underinsured motorist policy by the amount payable to Brown under the liability coverage of the underinsured motorist.
This case revolves around the interpretation of § 3 under "Limits of Liability" of the underinsured motorist policy. Brown argues that § 3 is a choice of law provision that provides for the application of Kentucky law to the set-off dispute. Farmers argues that § 8 is not a choice of law provision, that it is unambiguous, and that it does not provide for the application of Kentucky law to the set-off dispute. Thus, Farmers argues that under Indiana's conflict of laws rules, Indiana law determines whether Farmers is entitled to the set-off.1
Clearly the policy does not contain a general choice of law provision providing that *1360the policy will be interpreted and construed in accordance with the laws of a particular jurisdiction. Thus, the choice of laws rule of the state where the action is brought, Indiana in this case, will determine the law under which the policy will be interpreted and construed. Hubbard Mfg. Co. v. Greeson (1987), Ind., 515 N.E.2d 1071, 1073; see also Homer v. Guzulaitis (1991), Ind.App., 567 N.E.2d 153, trans. denied; Maroon v. State (1980), Ind.App., 411 N.E.2d 404. In Indiana, the "most intimate contacts" rule is applied in contract actions to determine what law will govern the transaction. Eby v. York-Division, Borg-Warner (1983), Ind.App., 455 N.E.2d 623. Applying the most intimate contacts rule in Travelers Ins. Companies v. Rogers (1991), Ind.App., 579 N.E.2d 1328, this court concluded that Michigan law governed the insurance contract action where the insured was a Michigan resident and the insurance contract was signed in Michigan. Several portions of the contract referred specifically to Michigan law and the policy contained numerous provisions for bringing it into compliance with Michigan insurance law. Indiana's only connection with the action was that it was where the accident occurred and the injured plaintiff was a resident of Indiana.
Here, the insured is an Indiana resident. The insured vehicle is registered and garaged in Indiana, and the insurance policy noted that it was an Indiana edition. The only contacts with Kentucky are that the accident occurred in Kentucky and the injured claimant is a resident of Kentucky. Farmers has made a prima facie showing that under the most intimate contacts rule, Indiana law should govern interpretation and construction of the policy.
Under Indiana law, as the majority correctly notes, insurers are free to limit coverage, but all exeeptions, limitations, and exelu-sions must be plainly expressed and any doubts will be construed against the contract drafter. Allstate Ins. Co. v. United Farm Bureau Mut. Ins. Co. (1993), Ind.App., 618 N.E.2d 31, 33. If the contract is clear and unambiguous, the language of the contract must be given its plain meaning. Sharp v. Indiana Union Mut. Ins. Co. (1988), Ind.App., 526 N.E.2d 237, 239, reh'g denied, trans. denied. While, as the majority notes, a contract will be found ambiguous if reasonable persons upon reading the contract could differ as to the meaning of its terms, in insurance policies an ambiguity is not established simply because one party asserts an interpretation contrary to that asserted by the opposing party. Id. Further, "in determining the amount due for loss under an insurance policy, the true meaning of the contract must be ascertained from all of its provisions, and not from the literal or technical construction of an isolated or special clause." Id. (my emphasis). Here, the majority concludes that $ 3 under the "Limits of Liability" is ambiguous and thus the trial court properly decided to apply Kentucky law. I do not agree that § 8 is ambiguous.
The uninsured motorist policy contains the following sections:
Limits of Liability
The limits of liability shown in the Declarations apply subject to the following:
1. - The limit for "each person" is the maximum for bodily injury sustained by any person in any one occurrence. Any claim for loss of consortium or injury to the relationship arising from this injury shall be included in this limit.
If the financial responsibility law of the place of the accident treats the loss of consortium as a separate claim, financial responsibility limits will be furnished.
2. Subject to the limit for "each person", the limit for "each occurrence" is the maximum combined amount for bodily injury sustained by two or more persons in any one occurrence.
3. Subject to the law of the state of the occurrence, we will pay no more than these maximums regardless of the number of vehicle insured, Insured persons, claims, claimants, policies, or vehicles involved in the occurrence.
Other Insurance
1. We will pay under this coverage only after the limits of liability under any applicable bodily injury Hability bonds or policies have been exhausted by payment of judgments or settlements.
*13612. The amount of Underinsured Motorist Coverage we will pay under Additional Definitions 3b [includes an underinsured vehicle in the definition of Uninsured motor vehiclel shall be reduced by the amount of any bodily injury coverage available to any party held to be liable for the accident.
3. Except as provided in paragraph 2 above, if any other collectible insurance applies to a loss covered by this part, we will pay only our share. Our share is the proportion that our limits of lability bear to the total of all applicable limits.
4. We will not provide insurance for a vehicle other than your insured car, unless the owner of that vehicle has no other insurance applicable to this part.
5. If any applicable insurance other than this policy is issued to you by us or any other member company of the Farmers Insurance Group of Companies, the total amount payable among all such policies shall not exceed the limits provided by the single policy with the highest limits of liability.
R. 18-19 (emphasis in original). When read in context with the other sections set out above, § 3 under "Limits of Liability" unambiguously states that regardless of the number of vehicles insured or involved in the accident and regardless of the number of persons, claims or policies involved in the accident, the maximum liability will be as stated in the Declarations and §§ 1 and 2 under "Limits of Liability," unless the law of the state of the occurrence requires a higher minimum liability. This provision says abso-Iutely nothing about reducing a pay out subject to the laws of the state of the occurrence. I do not agree with the majority that this is a "general provision about the limit of ... liability" applicable to a reduction in the amount paid out. Section 2 under "Other Insurance" clearly and unambiguously states that the amount paid out will be reduced by the amount available from an underinsured motorist and this section is not subject to the law of the state of occurrence. This is a valid provision under Indiana law, see Ind. Code 27-7-5-5, and Farmers is entitled to the set-off.
I would reverse the trial court and order summary judgment in favor of Farmers.

. Brown argued in her motion for summary judgment that Farmers was estopped from arguing that Indiana law should apply. However, Brown does not pursue that argument on appeal in response to Farmers's argument that it is not estopped, so we need not address that issue. Brown also does not respond to Farmers's argument on appeal that under Indiana's "most intimate contacts" rule, the policy should be interpreted in accordance with Indiana law. Thus, because there is not a choice of law provision in the policy to dictate otherwise, Farmers need only make a prima facie showing that the "most intimate contacts" rule results in application of Indiana law to the policy. See Coleman v. State (1992), Ind.App., 588 N.E.2d 1335, trans. denied.