Pacific Intermountain Express v. National Union Fire Insurance

In 1979, Thomas Near was injured at a jobsite owned by Charles King Associates (King) while unloading parts from a truck owned and operated by Pacific Intermountain Express (PIE). PIE self-insured its vehicles for loss arising from their use up to $1 million. King has an insurance policy covering the jobsite with National Union Fire Insurance (National Union). Near’s negligence action against PIE (not naming King or National Union) has been settled. In 1982, PIE filed an action seeking a declaration that King and National Union had a duty to defend and indemnify PIE in the negligence suit brought by Near.

PIE moved for summary judgment, arguing that King and National Union were the primary insurers under Insurance Code section 11580.9, subdivision (c), which provides the premises policy carrier is the primary insurer where a loss arising from unloading a motor vehicle is covered by insurance policies on both the premises and the vehicle. King and National Union opposed the motion, arguing that section 11580.9, subdivision (c), did not protect PIE because PIE was a self-insurer. They also argued that a 1980 amendment to section 11580.9 to include self-insurers did not…