BP America, Inc. v. State Auto Property & Casualty Insurance Co., 2005 OK 65

Summary

The Supreme Court of Oklahoma answered certified questions concerning whether an automobile exclusion using the term "any insured" in a commercial general liability policy excludes coverage for all insureds and whether that exclusion becomes ambiguous when coupled with a separation-of-insureds clause. The court held that the exclusion unambiguously barred coverage for automobile occurrences attributable to any insured and that the separation-of-insureds clause did not create ambiguity. The court emphasized the policy’s plain language, the separate automobile liability policy, and the absence of a premium for automobile coverage under the general liability policy.

Holdings

1. Under Oklahoma law, the term 'any insured' in a commercial general liability policy's auto-exclusion clause is clear and unambiguous and excludes coverage for all automobile occurrences attributable to any of the insureds, including innocent insureds.
2. The inclusion of a separation-of-insureds clause does not render an otherwise clear and unambiguous auto exclusion ambiguous or negate the exclusion.

Questions Presented

1. Whether the term 'any insured' in the auto-exclusion clause of a commercial general liability policy excludes coverage for all automobile occurrences attributable to any insured, including innocent insureds.
2. Whether the inclusion of an auto-exclusion clause and a separation-of-insureds clause creates an ambiguity in the insurance contract.

Disposition

other