Sutton

Following an accident with an underinsured motorist, plaintiffs Michael and Mary Sutton who held three separate automobile insurance policies on three separate vehicles with defendant Farmers Insurance Exchange (Farmers), unsuccessfully sought coverage under the policy with the highest underinsured motorist liability limit. Thereafter, plaintiffs filed the instant action for declaratory relief. Following trial, the trial court entered judgment in their favor and Farmers has appealed. For reasons which follow we reverse the judgment.

I

According to the record, on April 30, 1991, plaintiff Michael Sutton was struck from the rear while driving his 1989 Isuzu I-Mark (Isuzu). Plaintiff allegedly suffered severe injuries with compensatory damages in excess of $100,000. The driver who struck him had liability insurance with limits of only $15,000. Plaintiffs settled with the driver for the $15,000 policy limits.

At the time of the accident, plaintiffs owned two other vehicles in addition to the Isuzu: a 1976 Ford pickup truck (pickup truck) and a 1989 Ford Taurus (Taurus). Each of plaintiffs’ vehicles was insured through Farmers by a separate policy. The policy covering the…