McKenzie

Introduction

The primary issue raised on this appeal is one of insurance coverage. Liberty Mutual Fire Insurance Company (Liberty) issued two policies to Michael McKenzie (McKenzie). Each required that the insured own the covered vehicle. Neither policy defined “owned.” McKenzie submitted claims on each policy based upon the theft of his truck. It is undisputed that the stolen vehicle was designated as the insured vehicle and that McKenzie had paid the policies’ premiums. It is also undisputed that Liberty subsequently learned that a month before the theft, McKenzie had filed a transfer of title document with the Department of Motor Vehicles (DMV) ostensibly transferring title of the insured vehicle to his already deceased father. After filing that transfer document, McKenzie retained use and possession of the vehicle. (See fn. 6, post.)

Liberty filed a declaratory relief action to determine coverage and to recapture money already paid to McKenzie. The nub of Liberty’s position was that because McKenzie had “transferred” title to his deceased father, he (McKenzie) no longer owned the vehicle within the meaning of the policies and therefore was not entitled to coverage.…