Claims of Liability Arising Out of Hired or Non-Owned Automobiles
Do the Provisions of R.C.3937.18 Apply to a Policy of Primary Insurance Providing Coverage for Claims of Liability Arising Out of Hired or Non-Owned Automobiles ?
In Selander v. Erie Ins. Group (1999). 85 Ohio St. 3d 541, the Supreme Court addressed the following question:
"Do the provisions of R.C. 3937.18 apply to a policy of primary insurance which provides coverage for claims of liability arising out of the use of hired or non-owned automobiles, but is not issued for delivery with respect to some particular motor vehicle?" the Court answered the question "Yes."
Eugene Selander and Glenn Selander were electricians involved in a partnership known as Twin Electric.
On November 14, 1992, they were occupied in a 1980 Ford pickup truck, owned by one of the partners, that was listed as a covered automobile in a Pioneer Commercial Auto Policy issued to Twin Electric by Erie Insurance Company.
On November 14, 1992, Clark negligently drove into the Ford pickup killing Eugene and severely injuring Glenn.
Selanders settled all claims with Clark's insurer.
The Pioneer policy included underinsured motorist coverage in the amount of $300,000 and which paid $200,000 and $100,000 respectively to Eugene's estate and to Glenn.
Thereafter, Plaintiffs claimed underinsured motorists coverage under a Fivestar General Business Liability Policy issued by Erie to Twin Electric which had limits of $1,000,000 per occurrence and $2,000,000 aggregate.
Fivestar decline coverage because in claim it did not provide automobile liability coverage or uninsured/underinsured motorist coverage.
The Fivestar policy cover reads "Fivestar General Liability Policy (Excluding automobile).
The policy did provide coverage for accidents involving "hired" or "non-owned" automobiles:
The policy provided that provisions marked by an "X" provided extra protection: whenever an 'X' appears in the margin of this policy, you receive XTRA PROTECTION, either as additional coverage or as a coverage that is not in most commercial general liability policies." Id., 543.