Deardorff

Appeal from a judgment in an action for declaratory relief brought by plaintiff.

Facts

Plaintiff issued an insurance policy covering four vehicles owned by defendants Herold and Arline Deardorff on August 27, 1980, in California. The policy contained uninsured motorist coverage of $15,000 per person/$30,000 per accident, bodily injury of $100,000/$300,000, property damage of $50,000, medical of $5,000 and comprehensive collision at $100 deductible.

In July 1981, while Herold Deardorff was driving one of the covered vehicles in Burnsvale, Minnesota, it was struck head on by a Minnesota resident driving the wrong way on a one way road. As a result of the accident, Mr. Deardorff incurred medical bills of $70,000 and Mrs. Deardorff, who was a passenger in the car, incurred bills totaling $90,000. Defendants received $25,000 each from the driver of the other car and $30,000 each from plaintiff.

The Deardorffs’ policy contained an out-of-state insurance provision which states:

In 1974, plaintiff signed a state of Minnesota no fault certification form which states that any liability policy issued by plaintiff “with respect to a motor vehicle as to which the owner is…