410_C179

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NON-PERMISSIVE USE, INELIGIBLE FOR COVERAGE

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Automobile	Permissive Driver
Non-Owned Vehicle	Insured Person

On June 20, 2000, Rui Chen was killed when he was hit by a 1980 Pontiac driven by Larry King and owned by his mother, Leota King. Larry King pleaded guilty to operating a vehicle while intoxicated causing death. Globe American Casualty Company had issued its policy on the car and it was in force at the time of the accident. Chen had a policy issued by American Family Insurance Company. The trial court granted Globe's motion for summary judgment, and American Family appealed.

The evidence showed that Leota had lent the Pontiac to Barbara King (Larry's wife) when Barbara's car had mechanical problems. Barbara later bought a new car but did not return the Pontiac and Leota did not ask her to do so. Leota did not know Larry would be driving the car but had not told Barbara that Larry was not allowed to do so.

Globe argued that Larry King was not an "insured person" and its policy covered only a person using the car with the express permission of the owner and within the scope of such permission. Furthermore, he was not driving an insured car as defined in the policy.

It was also contended that the coverage of Globe's policy was expanded by the language used on the SR 22 form issued by Globe. The form (required by Indiana's Financial Responsibility Act) certified that the driver had liability insurance. However, Globe's policy specified that the operator's coverage applied only when King was driving a non-owned vehicle "with the express permission of the owner."

The higher court found that the language on the SR 22 form did not provide coverage of any non-owned vehicle driven by King. It ruled that the form did not override the policy provision regarding non-owned vehicles. The insured vehicle had been loaned to Larry King's wife, and Larry King did not have his mother's permission to drive the car as required by the policy.

The summary judgment entered in the lower court in favor of Globe American was affirmed.

American Family Insurance Company, Appellant, v. Globe American Casualty Company-No. 49A04-0204-CV-163-Court of Appeals of Indiana-September 10, 2002-774 North Eastern Reporter 2d 932.