National General Ins. Co. v. United Services Auto. Ass'n
| Decision Date | 25 February 1997 |
| Docket Number | No. A96A2491,A96A2491 |
| Citation | 482 S.E.2d 727,224 Ga.App. 821 |
| Parties | , 97 FCDR 1005 NATIONAL GENERAL INSURANCE COMPANY v. UNITED SERVICES AUTOMOBILE ASSOCIATION. |
| Court | Georgia Court of Appeals |
Chambers, Mabry, McClelland & Brooks, Robert M. Darroch, Karen M. Raby, Atlanta, for appellant.
Nickerson & Tuszynski, David E. Tuszynski, Lane, O'Brien & Caswell, Eugene O'Brien, Bovis, Kyle & Burch, Charles M. McDaniel, Jr., Atlanta, for appellee.
In this appeal, we are asked to address the following issue: Which of two uninsured motorist insurance carriers is primarily responsible for providing coverage to an injured person insured under both policies, when the carrier that received the injured insured's premiums claims its policy provides coverage only in excess of any other available uninsured motorist coverage, and where the policies were issued in different states. For the reasons set out below, we affirm the trial court's ruling that the uninsured motorist carrier which received the injured insured's premiums is primarily responsible for coverage.
For summary judgment purposes, the parties stipulated to the following facts: Buford Pender, a Michigan resident, rode in a car owned and driven by Melvin Pender, a Georgia resident. Buford Pender was injured when a car driven by Gregory Miles collided with the car in which the Penders rode. The collision occurred in Georgia. Buford Pender's damages amounted to $62,500. Miles was insured by Coronet Insurance Company, but had only $7,500 available in bodily injury liability coverage for Buford Pender's claim. Buford Pender had $20,000 uninsured motorist coverage with National General Insurance Company; the policy was issued and delivered in Michigan. Melvin Pender had $100,000 per person uninsured motorist coverage through United Services Automobile Association ("USAA"); this policy was issued and delivered in Georgia. Coronet has agreed to pay Buford Pender the $7,500 available under its policy. National General and USAA both agree that Buford Pender qualifies as an insured eligible for uninsured motorist coverage under their policies, but disagree as to which uninsured motorist insurer is primarily responsible for providing the remaining coverage.
Buford Pender (hereinafter "Pender") sued Miles and, because Miles was underinsured, served USAA and National General as the carriers responsible for providing him with uninsured motorist coverage. National General moved for summary judgment claiming that under the terms of its policy and Michigan law, which it argues governs its policy, National General's uninsured motorist coverage is not reached until after USAA's uninsured motorist limits are reached. USAA filed a cross-motion for summary judgment, contending National General is primarily obligated to provide coverage for Pender because Pender paid his premiums to National General and therefore, under Georgia law, National General is Pender's primary insurer. The trial court found that National General was the primary insurer and granted USAA's cross-motion for summary judgment. National General appeals.
National General contends the trial court erred in determining that it is the primary uninsured motorist insurance carrier when Michigan law applies to the interpretation of its contract, and under Michigan law and the terms of its policy, its coverage is only excess over USAA's limits.
National General points to the "other insurance" clause contained in its policy, which provides that if there is any other applicable insurance, any insurance National General provides with respect to a vehicle the insured does not own "shall be excess over any other collectible insurance." National General interprets this clause as meaning that its coverage is not reached until after USAA's uninsured motorist coverage is exhausted. 1 Under National General's interpretation,...
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