Garcia

This appeal raises an issue of first impression. Is an uninsured motorist insurer liable for injuries its policyholders sustain when struck by a vehicle owned by a self-insurer who becomes insolvent more than one year after the accident. We conclude it is, at least where the self-insurer has been adjudicated to be insolvent. Accordingly, we reverse a declaratory judgment entered in favor of the uninsured motorist carrier in this case.

I. Facts and Proceedings Below

The essential facts are not in dispute. On December 23, 1978, Boanerge, Piedad and Antonio Garcia (the Garcias) were injured in an automobile accident with a taxicab owned and operated by Golden State Transit Corporation, a California corporation doing business as the Los Angeles Yellow Cab Company. At the time of the accident, Golden State did not carry any public liability insurance on its vehicles, but was “self-insured” pursuant to Vehicle Code sections 16052-16053. In March 1979, the Garcias filed a complaint for damages against Golden State. They elected to arbitrate these claims in August 1980. The arbitration was successful for the Garcias, awarding them damages of more than $20,000 on August 14,…