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Arredondo v. Avis Rent a Car System3/27/2001
my concern for the proper application of the statutes in this case. This is not a case involving insurance procured by the owner of an automobile but, rather, insurance procured by the operator of an Avis rental car. The distinction is important because of the statutory treatment of each. The parties, and consequently the trial court and the majority opinion, fail to take into consideration the distinction between insurance policies purchased by the owners of automobiles and insurance policies purchased by the operators of automobiles so clearly set forth in the applicable statutes. They also fail to consider those statutory sections dealing with car rental companies and "authorized drivers" in regard thereto. Proper analysis of the statutes is essential to reaching a correct conclusion in this case inasmuch as the insurance policies involved were operator policies purchased in conjunction with the rental of a car from Avis Rent A Car System, Inc.
The Utah statutes clearly recognize the distinction between insurance policies purchased by owners of automobiles and insurance policies purchased by operators of automobiles. Section 31A-22- 303(1)(a)(ii)(A) of the Utah Code provides that an owner policy must insure not only the person named in the policy but also any other person using the named automobile with the express or implied permission of the named insured, as well as relatives of the named insured who are residents of the household. That subsection specifically states:
(A) f it is an owner's policy, designate by appropriate reference all the motor vehicles on which coverage is granted, insure the person named in the policy, insure any other person using any named motor vehicle with the express or implied permission of the named insured, and, except as provided in Subsection (7), insure any person included in Subsection (1)(a)(iii) against loss from the liability imposed by law for damages arising out of the ownership, maintenance, or use of these motor vehicles within the United States and Canada, subject to limits exclusive of interest and costs, for each motor vehicle, in amounts not less than the minimum limits specified under Section 31A-22-304 . . . . (Emphasis added.)
Subsection(1)(a)(iii), referred to above, requires coverage under owner policies for relatives of the same household. That section states that "except as provided in Subsection (7), [the owner policy shall] insure persons related to the named insured . . . who are residents of the named insured's household."
However, subsection (B) of the same statute has different requirements as to non-owners who purchase operator policies. Section 31A-22-303(1)(a)(ii)(B) provides that an operator policy insures only the named insured for claims arising out of the insured's use of the non-owned vehicle. Specifically, that subsection states:
(B) f it is an operator's policy, insure the person named as insured against loss from the liability imposed upon him by law for damages arising out of the insured's use of any motor vehicle not owned by him, within the same territorial limits and with the same limits of liability as in an owner's policy under Subsection (1)(ii)(A) . . . . (Emphasis added.)
This subsection does not insure permissive users, nor does it refer to or incorporate subsection (1)(a)(iii), pertaining to relatives of the same household, as does subsection (A), covering owner policies. If the legislature had wanted operator policies to cover permissive users and relatives of the household, the statute would have so stated and by reference to subsection (1)(a)(iii) as it did in subsection (A) dealing with owner policies.
In fact, this is made even
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