Eanes

Defendants William and Mary Banes, insureds under a motor vehicle insurance policy issued by plaintiff Foremost Insurance Company, appeal from a judgment entered against them in a declaratory relief action filed by Foremost. They challenge the trial court’s ruling that the policy in question could not possibly apply to indemnify the Banes for their liability arising out of an accident which occurred while the subject vehicle—a motor home—was in Mexico. We conclude the trial court correctly interpreted the territorial limitation clause in the policy as precluding coverage, and affirm the judgment.

I

In February 1974, the Eanes loaned their motor home to Mr. and Mrs. Robert Horton and Virgil and Judith Folands for a trip the Hortons and Folands planned to make to Mexico. On February 14, the motor home apparently being driven by one of the Hortons was involved in an accident in Mexico in which the Hortons were killed and the Folands were injured.

At the time of the accident, an insurance policy issued by Foremost insured the Fanes with respect to the motor home. On page two of the policy provisions under a heading “Policy Period, Territory, Purposes of Use,” the policy…