Nielsen

This declaratory relief action concerns uninsured motorist insurance coverage. We conclude that when the owner and the operator of an otherwise uninsured vehicle have liability insurance coverage for bodily injury damages through a personal liability umbrella policy, that vehicle is not an uninsured motor vehicle. Consequently, we affirm the judgment in favor of California Capital Insurance Company (CCIC) that declared that CCIC did not have to pay uninsured motorist benefits to its injured insured, Douglas E. Nielsen.

Background

Eighteen-year-old Nielsen was a passenger in an Acura driven by Bryan Jones. Jones, who was inebriated and driving with a suspended license, lost control of the Acura and crashed into a pole. Nielsen was thrown from the car, rendering him a quadriplegic.

Prior to the accident, Jones’s mother, Carla Brown, had bought the Acura and apparently lent it to him. At the time of the accident, the Acura was not covered by any auto liability insurance policy.

Brown, however, at the time of the accident, had a $1 million personal liability umbrella policy with State Farm. State Farm provided coverage for both Jones and Brown under this policy, and paid…