Marco Soto-Abarca v. Trexis Insurance Co.

Summary

The Arkansas Court of Appeals affirmed summary judgment for Trexis Insurance Co., holding that an automobile-policy exclusion for liability arising from the use of a vehicle by an unlicensed driver was clear, unambiguous, and did not violate Arkansas public policy. The court concluded that Arkansas statutes requiring omnibus coverage and compulsory insurance do not expressly prohibit such exclusions.

Holdings

1. The exclusion for bodily injury or property damage caused by or arising from the operation, maintenance, or use of the vehicle by a person without a valid, in-force operator's license was clear and unambiguous.
2. Arkansas law does not prohibit an automobile insurance policy from excluding liability coverage for an unlicensed driver, and the exclusion is not void as against Arkansas public policy.
3. Trexis was entitled to summary judgment declaring that the unlicensed-driver exclusion was valid and that coverage was excluded under the policy.

Questions Presented

1. Whether the unlicensed-driver exclusion in Trexis's automobile insurance policy was clear and unambiguous.
2. Whether Arkansas's omnibus-clause statute, compulsory-insurance statutes, or public policy prohibited enforcement of the unlicensed-driver exclusion.
3. Whether Trexis had no duty to defend or indemnify Trejo under the exclusion.

Disposition

affirmed