State Farm Mut. Auto. Ins. Co. v. Scitzs, 52437

• Decision Date: 11 March 1981
• Docket Number: No. 52437,52437
• Parties: STATE FARM MUTUAL AUTOMOBILE INSURANCE CO. v. Kenneth R. SCITZS.
• Court: Mississippi Supreme Court

Page 1371

394 So.2d 1371

STATE FARM MUTUAL AUTOMOBILE INSURANCE CO. v. Kenneth R. SCITZS.

No. 52437.

Supreme Court of Mississippi.

March 11, 1981.

Gail A. Crowell, Bryan, Nelson, Allen, Schroeder & Cobb, Gulfport, for appellant.

J. Robert Sullivan, Laurel, for appellee.

Before PATTERSON, C. J., and SUGG and WALKER, JJ.

SUGG, Justice, for the Court:

The plaintiff, Kenneth R. Scitzs, filed a declaration in the Circuit Court of the Second Judicial District of Jones County seeking judgment against the defendant, State Farm Mutual Automobile Insurance Co., for the sum of $10,000. He alleged he was due this sum under the medical coverage provisions of two policies of insurance issued by the defendant on two vehicles which were not involved in the collision resulting in plaintiff's injuries.

The case was submitted to the trial judge on the following stipulation of facts. On October 16, 1977, the plaintiff, while driving his 1976 model Chevrolet one-half ton pickup truck, was injured in a collision with a vehicle driven by Ray Musgrove. Plaintiff incurred medical expenses totaling $18,979.90 within one year from the date of the collision for treatment of injuries received by plaintiff in the collision. At the time of the collision, plaintiff owned, in addition to the Chevrolet pickup, two other vehicles, a Ford LTD and a Chevrolet Chevette. All three of the vehicles owned by plaintiff were covered by separate liability policies issued by the defendant containing medical payment provisions for which separate premiums were paid. The declarations in each policy described only one vehicle. Each of the policies was issued a different date but were otherwise identical except for the description of the insured vehicle and the premium charged. The maximum medical payment coverage of each policy was $5,000.

The defendant, recognizing its liability under the policy covering the pickup truck involved in the collision, paid the plaintiff the maximum medical payment coverage of $5,000 provided for in the policy covering the pickup truck. Plaintiff's suit was for payment of a like and equal amount under each of the other two policies.

Plaintiff maintained the medical coverage of all three policies applied and he was entitled to "stack" the coverage under the policies. Defendant's position was that the $5,000 paid plaintiff under the policy insuring the Chevrolet pickup was the extent of its liability, and the two policies insuring plaintiff's vehicles which were not involved in the collision did not apply.

The trial court agreed with plaintiff and held that the medical payment provisions of all three policies applied and entered judgment for $10,000. The $10,000 represented the aggregate of the maximum medical payments coverage under the two policies insuring plaintiff's two vehicles which were not involved in the collision.

Defendant's appeal presents the question of whether the medical coverage provisions of the three policies may be aggregated or "stacked." This is a question of first impression in Mississippi. States which have considered the question hold that the question must be determined by construing the provisions of the policies involved in accord with the accepted rules for construing insurance policies. The rules for construction of insurance contracts are firmly established in our cases. See cases in Volume 9 Mississippi Digest, Insurance (1964) under key numbers 146.4, 146.5(1)(2), 146.7(1)(6)(7).

Following are summary statements of these rules of construction:

1. Where an insurance contract is plain and unambiguous, it should be construed as written, like other contracts.

2. Insurance Contracts are construed most strongly against party drafting contract, and most favorably to the policyholder.

3. Where terms of insurance contracts are ambiguous or doubtful, contract must be construed most favorably to insured and against insurer.

4. Insurance contracts must be given a reasonable and sensible interpretation, and where policy is subject to two interpretations equally reasonable, that which gives the greater indemnity to the insured should be adopted.

5. Where there is no practical difficulty in making the language of an insurance contract free from doubt, any doubtful provision in the policy should be construed against the insurer.

6. Terms of insurance policies are construed favorably to insured wherever reasonably possible, particularly exclusion clauses.

7. Although ambiguities of insurance contract should be construed against insurer, court cannot alter or change contract where terms are not ambiguous, despite resulting hardship on insured.

With these rules of construction as a guide, we now turn to the provisions of the policies involved in this case. At the outset, it is noted that each policy insured only one automobile specifically described in the "declarations." One policy described the Chevrolet pickup involved in the collision, another a Ford LTD owned by plaintiff, and the other a Chevrolet Chevette owned by plaintiff. In the declarations of each policy the limits of liability for medical payment under Coverage C was $5,000. Each of the policies contains the following insuring agreements:

COVERAGE C MEDICAL PAYMENTS

To pay reasonable medical expenses incurred for services furnished within one year from the date of accident:

(1) while occupying the owned motor vehicle, or

(2) through being...