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Integon Indemnity Corp. v. Universal Underwriters Insurance Co.9/6/1994
two policies provides coverage. Although defendant contends that Ms. Gaddy is not an insured under the policy because she was "not required by law" to be an insured under the Universal policy, the United Services Court rejected this very argument. As quoted above, the United Services Court noted that Universal was required by law to insure the driver of the truck under the provisions of the Financial Responsibility Act. Although the driver was an insured, the limitation in the Universal policy precluded coverage by Universal because United Services Automobile Association provided coverage sufficient to satisfy the minimum financial requirements. Similarly, in the case below, N.C. Gen. Stat. ยง 20-279.21(b)(2) required Universal to insure persons operating the Peugeot with Meeker's permission. We find that Ms. Gaddy was an insured because she was operating the vehicle with Meeker's permission.
The question then is whether Universal agreed to provide coverage to Ms. Gaddy under the circumstances. In United Services, under the coverage limitation provisions, Universal agreed to insure persons "required by law to be an insured" only in the amount necessary to comply with the minimum provisions of North Carolina law. Since the driver's policy in United Services provided the minimum coverage, the Court reasoned that Universal had not agreed to provide coverage. In the case below, the parties stipulated that Ms. Gaddy and the Bridges held policies with Atlantic Casualty and Integon respectively, each with liability limits in the minimum amount required by North Carolina law. As in United Services, the Integon policy provided that coverage was excess over any other collectible insurance for vehicles not owned by the insured. Following the reasoning in United Services, we find that Integon provided the minimum coverage required by the Financial Responsibility Act. As in United Services, "there is nothing in the policy issued by the plaintiff which says it will not provide coverage if there is another policy which provides coverage." United Services, 332 N.C. at 337, 420 S.E.2d at 157.
Although the analysis and policies in United Services and the case below are almost identical, there is a significant difference in the Universal policy coverage provisions. Unlike United Services, in the case below, the Universal policy provides that, if there is other applicable insurance, Universal will pay its pro rata share of the minimum limits. Since Integon provides other applicable insurance, we find that by the terms of the policy Universal has agreed to pay a pro rata share of the minimum financial limits. Therefore, we find that the trial court erred in finding and concluding that Ms. Gaddy was not an insured under the Universal policy, Universal did not have an obligation to indemnify Ms. Gaddy or her parents, Universal had no duty to defend, and Integon was entitled to nothing from Universal.
The judgment below is reversed and the cause remanded for entry of a judgment providing for defendant Universal to pay its pro rata share.
Reversed and remanded.
Judges EAGLES and ORR concur.
Disposition
Reversed and remanded.
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