Court Opinion

ID: 9622840
Source: CourtListenerOpinion
Date Created: 2023-08-22 06:24:13.537333+00
Date Added: 2024-06-11T18:05:21.157581
License: Public Domain

BURKE, Justice,
with whom MOORE, Justice, joins, dissenting.
I disagree with the holding that the uninsured owned vehicle exclusion contained in the Nationwide policy was invalid at the time of the accident.
If uninsured owned vehicle exclusions were invalid before 1985, an insured would have been able to buy a policy on one owned vehicle, pay premiums for only that vehicle, and, thereby, claim coverage for himself and others for any number of uninsured motor vehicles he owned. If we had prohibited insurers from limiting uninsured motorists coverage with such exclusions, we would have sanctioned this very behavior; we would have provided a disincentive for owners of multiple vehicles to insure each vehicle. A rule that discouraged vehicle owners from obtaining insurance for all their owned vehicles would have contravened the stated purpose of the Motor Vehicle Safety Responsibility Act. See AS 28.20.010 (motorists should be financially responsible for their acts, and thus they are encouraged to obtain full insurance coverage).
In holding an exclusionary clause similar to the one at issue here valid, the Idaho Supreme Court stated:
If an insure[r] is required to insure against a risk of an undesignated but owned vehicle, or a different and more dangerous type of vehicle of which it has no knowledge, it is thereby required to insure against risks of which it is unaware, unable to underwrite, and unable to charge a premium therefor.
If the legislature had desired to place such a burden on insurance earners, it could have required carriers to insure all applicants for motor vehicle liability policies at a uniform rate_ The legislature has not enacted such a requirement, and if it did so, undoubtedly owners of a single vehicle would sustain rate increases.
Dullenty v. Rocky Mountain Fire & Casualty, 111 Idaho 98, 106, 721 P.2d 198, 206 (1986). Similarly, there is no indication in AS 28.20.440 of a legislative intent to require insurers to increase their exposure and accept unknown and uncalculable risks. Thus, I would not interpret our statutory scheme as prohibiting insurers from excluding from coverage accidents resulting from the use of an owned but uninsured motor vehicle.
This interpretation is supported by the fact that AS 28.20.445(d), which took effect January 1, 1985, expressly approves the very exclusion at issue here: uninsured motorists coverage does not apply to losses incurred while occupying an uninsured owned vehicle. Section .445(d) did not replace or supplant section .440, nor did its addition to chapter 20 change section .440 in any substantive way. Rather, section .445 was merely added to chapter 20. See ch. 70, § 12, SLA 1984. It is fair to infer that this statutory addition was intended as a clarification of the existing law. In U.S. Fidelity & Guaranty v. DeFluiter, 456 N.E.2d 429, 432 (Ind.App.1983), the court, faced with a similar issue, stated:
[t]he Legislature through enactment of statutes defines public policy. Further, the subsequent amendment of a statute is indicative of the Legislature’s intent at the initial enactment of that statute. Thus, it appears the Legislature always intended that insurance companies be allowed to limit their uninsured motorist *1256coverage in the matter at issue in the instant case.
(citations omitted). See also Laborers and Hod Carriers Union, Local No. 341 v. Groothuis, 494 P.2d 808, 811 (Alaska 1972) (“it is just as logical to regard the [newly adopted] amendment as a legislative clarification of the original language and not a substantial change”).
In light of these considerations, I would hold that the uninsured owned vehicle exclusion was valid. Julie Hillman’s injuries were incurred while she was occupying a motor vehicle owned by her family but not insured, and thus the accident was explicitly excluded from coverage by the policy terms. I would affirm the order granting summary judgment for Nationwide.