Truck Insurance Exchange v. Wilshire Insurance

Plaintiffs, Arnold Wiebe, doing business as Arnold Wiebe Buick, and Truck Insurance Exchange, hereafter referred to as Exchange, brought this action in the court below to reform an insurance policy and for declaratory relief. They named Charlotte Preston, the heirs of George T. Dudney, hereafter referred to as the Dudneys, and the Wilshire Insurance Company, hereafter referred to as Wilshire, as defendants. After court trial the court ordered the policy reformed as prayed for in the complaint and declared that defendant Charlotte Preston was not covered by the Exchange policy as to her automobile accident with George T. Dudney; however, the court declared that she was covered by the Wilshire , policy. All defendants have appealed. They present three main contentions for reversal: that the court’s judgment reforming the policy is contrary to public policy; that the exclusion (endorsement ET-279) which the court ordered attached to the' policy is violative of Insurance Code section 11580.1 and is void; and that the evidence is insufficient to support the judgment. .

The facts are these: In July 1965, Charlotte Preston transferred her interest in a 1964 Buick Electra to her…