State Farm Mut. Auto. Ins. Co. v. Progressive Marathon Ins. Co.

Summary

The court held that California Insurance Code section 11580.9, subdivision (d) encompasses uninsured motorist coverage and treats losses caused by uninsured motorists as liability losses. However, the statute did not apply because the State Farm policy did not apply to the same motor vehicle as the Progressive policy; the insurers were therefore required to prorate their payments, and summary judgment for Progressive was affirmed.

Holdings

1. Liability insurance under section 11580.9 includes uninsured motorist coverage.
2. A loss caused by an uninsured motorist is a liability loss within the meaning of section 11580.9, subdivision (d).
3. State Farm's uninsured motorist coverage did not apply to the Volkswagen Jetta within the meaning of section 11580.9, subdivision (d); therefore, the statute did not make Progressive's coverage primary or require Progressive to reimburse State Farm.

Questions Presented

1. Whether the term liability insurance in Insurance Code section 11580.9, subdivision (d) encompasses uninsured motorist coverage.
2. Whether a loss caused by an uninsured motorist is a liability loss under section 11580.9, subdivision (d).
3. Whether both insurers' policies apply to the same motor vehicle so that section 11580.9, subdivision (d) allocates Progressive's coverage as primary and State Farm's as excess.

Disposition

affirmed