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- Title
AUTOMOBILE INSURANCE--HOUSEHOLD EXCLUSION.
- Authors
Klayman, Elliot I.
- Abstract
This article presents the decision of the Supreme Court of New Mexico on the case Estep versus State Farm Mutual Automobile Insurance Co. which was filed in 1985. The Supreme Court of New Mexico held that a provision in an automobile insurance policy excluding household members from receiving benefits under the liability coverage is contrary to public policy and therefore invalid. A wife suffered injuries from an accident involving an automobile driven by her husband. The husband died as a result of the accident. The insurance policy contained a clause which stated that the insurance did not apply to an insured or any member of the family of an insured residing in the same household as the insured. The wife sued the insurer, seeking a declaratory judgment that the exclusion was invalid. The court held that the state's financial responsibility law made the exclusion contrary to public policy. The court reasoned that excluding household members from benefits otherwise payable as a result of negligence frustrates this policy because household members, such as a wife, may be injured due to the negligence of an insured.
- Subjects
ESTEP v. State Farm Mutual Automobile Insurance Co. (Supreme Court case); NEW Mexico. Supreme Court; AUTOMOBILE insurance; INSURANCE policies; INSURANCE claims; ACTIONS &; defenses (Law)
- Publication
Journal of Risk & Insurance, 1986, Vol 53, Issue 1, p181
- ISSN
0022-4367
- Publication type
Article