Farmers Ins. Exchange v. Teachers Ins. Co.

Teachers Insurance Company, an automobile liability insurer, appeals from a judgment declaring its policy provides primary coverage against claims for personal injuries sustained by the son of the named insureds while riding as a passenger in the insured vehicle being driven by a permissive user. The judgment also ordered indemnification to respondent Farmers Insurance Exchange, whose contract of insurance on the permissive user was deemed secondary. We agree with the trial court's holding that exclusions of family members and relatives written into Teachers’ contract of insurance are void as against public policy and affirm the judgment.

The facts are these:

Randy J. Frye (Randy) received injuries proximately caused by the negligent operation of a vehicle owned jointly by him and his mother (Mariys) while he was riding as a passenger. The negligent operator (Nixon) was driving with permission of Randy and Marlys at the time of the accident.

Teachers Insurance Company covered the involved vehicle under its policy of liability insurance designating Marlys and Robert Frye, Randy’s parents, as the “named insureds.” Randy was mentioned as the principal driver for the auto…