 |
 |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
|
|
|
GEICO General Insurance Co. v. Northwestern Pacific Indemnity Co.6/14/2005
The United States District Court for the Western District of Oklahoma has certified a question of state law to this Court under the Oklahoma Revised Uniform Certification of Questions of Law Act, 20 O.S. 2001 §§ 1601, et seq. The federal court asks:
"Is an excess/umbrella policy included in determining the liability limits of an uninsured motor vehicle under 36 O.S. § 3636(C)?"
We answer the question, "no."
FACTS AND PROCEDURAL BACKGROUND
Travis Chubbuck, the 16 year old son of Gary and June Chubbuck, was involved in an automobile accident on May 28, 2002 while driving a car owned by June Chubbuck. Jennifer Munholland, also 16, was a passenger in the car that Travis was driving when they were struck by a truck that apparently had the right of way. As a result of the accident both Travis and Jennifer were killed. Jennifer Munholland's estate brought a wrongful death suit against Travis Chubbuck's estate.
GEICO, the plaintiff here, had issued a family automobile policy to June Chubbuck. The GEICO policy provided automobile insurance in the single limit amount of $300,000 plus an additional single limit amount of $300,000 in "UM," that is, uninsured-under insured motorist, coverage. The Chubbucks also had an excess liability policy with Northwestern Pacific Indemnity Company. The NPIC excess policy provided for $2,000,000 additional coverage in excess of the coverage of the GEICO policy.
The parties agree that Travis Chubbuck was an insured under both the GEICO and NPIC policies and that Jennifer Munholland was an insured under the GEICO policy. There is also no dispute that the GEICO policy provided primary coverage and that the NPIC policy provided excess coverage.
The Munholland wrongful death claim was settled by mediation for $800,000. GEICO paid the policy limits of both its $300,000 automobile liability policy and its $300,000 UM coverage, a total of $600,000. NPIC paid the excess of $200,000. The reasonableness of the settlement is undisputed.
GEICO then sued NPIC for equitable subrogation in the United States District Court for the Western District of Oklahoma. The federal court then certified to this Court the Certified State Question of Law presented here.
GEICO claims that it should not have had to pay its $300,000 UM coverage. GEICO contends that in determining whether the Chubbuck's car was an "uninsured motor vehicle," as that term is defined in 36 O.S. 2001 § 3636(C), the Chubbuck's excess liability policy with NPIC should have been taken into account. Thus, GEICO claims it should have had to pay only $300,000 of the $800,000 settlement and NPIC should have had to pay the remaining $500,000.
In response to GEICO's claim, NPIC argues that the legislature did not intend for § 3636(C) to encompass excess liability policies and that primary UM coverage is immediately triggered upon exhaustion of the primary automobile liability coverage.
Both GEICO and NPIC filed motions for summary judgment in the federal court. The federal court, having found that an issue of first impression was presented, then certified the issue to this Court in the form of its Certified Question of State Law.
DISCUSSION
I. Whether uninsured motorist coverage was required under the terms of the NPIC excess contract is a question of law, not fact.
GEICO candidly admits "that excess insurers are typically liable only after the primary coverage has been exhausted." This admission would answer the question certified to us but GEICO claims that whether the UM coverage mandated by 36 O.S. 2001 § 3636, which it provided to the
Page 1 2 3 4 Oklahoma Personal Injury Attorneys
Personal Injury Lawyers
|
| |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|