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COA: Insurance policy not contrary to code

Jennifer Nelson
January 1, 2008
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A minimum-coverage insurance company's policy language that excludes coverage for leased vehicles in certain circumstances isn't contrary to Indiana Code, the Court of Appeals ruled today.

In the appeal of Safe Auto Insurance Co. v. Enterprise Leasing Company of Indianapolis, et al., No. 01A02-0712-CV-1120, the Court of Appeals reversed the trial court's grant of summary judgment in favor of Enterprise Leasing on Safe Auto Insurance's complaint for declaratory judgment. Safe Auto filed the complaint arguing its policyholder, Jeffrey Harrison, was not driving a covered vehicle when he was involved in an accident with a car he leased from Enterprise, and as a result, he has no coverage under Safe Auto's policy.

The trial court agreed with Enterprise's argument that Harrison's Safe Auto policy coverage for leased vehicles - which only granted liability coverage on a rented car when Harrison's vehicle was being serviced, repaired, stolen, or destroyed - was contrary to Indiana Code Section 27-8-9-9. That statute states in part, "When a claim arises from the operation of a motor vehicle leased under a written lease agreement, if under the agreement the lessee agrees to provide coverage for damage resulting from his operation of the vehicle, then the motor vehicle insurance coverage of the lessee is primary."

Harrison rented a truck from Enterprise to drive to Virginia because he didn't think his own car was dependable enough for the road trip. When he signed the rental agreement, he declined to purchase supplemental liability protection and never provided written proof of insurance coverage for the rented truck. While in Virginia, he was in an accident, which injured those in the other car.

Safe Auto filed a complaint for declaratory relief in Adams County, requesting a judgment that there is no coverage under the Safe Auto policy and the company doesn't have a duty to defend or indemnify Harrison for the accident.

Harrison didn't have coverage under his policy for the truck because the reason he rented wasn't one of the circumstances under which Safe Auto would provide him coverage on a leased vehicle, wrote Judge Paul Mathias.

Harrison's Safe Auto policy involving lease coverage doesn't conflict with I.C. Section 27-8-9-9 because this section only applies when the lessee agrees to provide insurance coverage. Because Harrison never agreed in writing to provide insurance himself for the truck and believed Enterprise would provide the insurance, the statute isn't applicable to this case, wrote the judge.

Even if the section applied, Safe Auto's policy isn't unenforceable because the policy language doesn't run afoul of the plain language of the statute and there is no law that requires insurance companies to provide coverage for vehicles leased by their insureds for any reason.

The Court of Appeals reversed the trial court's ruling and remanded.
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  1. Such things are no more elections than those in the late, unlamented Soviet Union.

  2. It appears the police and prosecutors are allowed to change the rules halfway through the game to suit themselves. I am surprised that the congress has not yet eliminated the right to a trial in cases involving any type of forensic evidence. That would suit their foolish law and order police state views. I say we eliminate the statute of limitations for crimes committed by members of congress and other government employees. Of course they would never do that. They are all corrupt cowards!!!

  3. Poor Judge Brown probably thought that by slavishly serving the godz of the age her violations of 18th century concepts like due process and the rule of law would be overlooked. Mayhaps she was merely a Judge ahead of her time?

  4. in a lawyer discipline case Judge Brown, now removed, was presiding over a hearing about a lawyer accused of the supposedly heinous ethical violation of saying the words "Illegal immigrant." (IN re Barker) http://www.in.gov/judiciary/files/order-discipline-2013-55S00-1008-DI-429.pdf .... I wonder if when we compare the egregious violations of due process by Judge Brown, to her chiding of another lawyer for politically incorrectness, if there are any conclusions to be drawn about what kind of person, what kind of judge, what kind of apparatchik, is busy implementing the agenda of political correctness and making off-limits legit advocacy about an adverse party in a suit whose illegal alien status is relevant? I am just asking the question, the reader can make own conclsuion. Oh wait-- did I use the wrong adjective-- let me rephrase that, um undocumented alien?

  5. of course the bigger questions of whether or not the people want to pay for ANY bussing is off limits, due to the Supreme Court protecting the people from DEMOCRACY. Several decades hence from desegregation and bussing plans and we STILL need to be taking all this taxpayer money to combat mostly-imagined "discrimination" in the most obviously failed social program of the postwar period.

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