Averett v. Farmers Ins. Co. of Ariz
In Averett v. Farmers Ins. Co. of Ariz., 177 Ariz. 531, 534, 869 P.2d 505, 508 (1994), an insured entered an insurance contract, purchasing increased limits to $ 500,000. Id. at 533, 869 P.2d at 507.
An exclusion left the limits for family members at the prior, standard level of $ 30,000. Id. at 532, 869 P.2d at 506.
The dominant purpose of the contract in Averett was to provide increased insurance coverage, but the clause at issue in Averett eliminated that purpose as to family members. Id. at 532-34, 869 P.2d at 506- 08. The supreme court accordingly remanded for a fact finder to consider whether the clause was outside the insured's reasonable expectations. Id. at 535, 869 P.2d at 509.