Government Employees Insurance v. Superior Court

Real party in interest Jameszetta R. Sims held a policy of automobile insurance issued by petitioner Government Employees Insurance Company (GEICO). It included collision coverage for her car. After she was involved in a traffic accident and suffered serious and disabling injuries, GEICO paid her husband, Demar Sims, the agreed value of the car. Unfortunately, Jameszetta and Demar were estranged and separated, and he was no longer an insured on her policy; she alleges that, as part of their informal separation agreement, the car was to be hers. However, he was still a registered owner of the vehicle. Demar never paid Jameszetta any of the insurance proceeds.

The policy contained a provision which authorized GEICO to “settle claims for loss either with the insured or the owner of the property.” (Original italics.) Is GEICO off the hook? We hold that it is, and accordingly will direct the trial court to grant GEICO’s petition for summary judgment.

Facts and Procedural Background

Most of the significant facts are not in dispute; to the extent that they are, we present the facts in the light most favorable to Jameszetta.

Jameszetta was the sole named insured on the…