State Farm Mutual Automobile Insurance v. Superior Court

Introduction

Petitioner, State Farm Mutual Automobile Insurance Company (State Farm), seeks a writ of mandate directing the respondent court to vacate an order compelling arbitration of an uninsured motorist claim filed by its insured, plaintiff John Soltero (Soltero). The insurer of the tortfeasor in Soltero’s underlying action became insolvent after suit was filed against the tortfeasor and more than one year after the subject accident. State Farm contends, pursuant to statute and the insurance policy, there was no uninsured motorist coverage for Soltero’s damages due to the fact the tortfeasor’s insurer did not become insolvent for more than one year after the accident.

State Farm’s petition raises two issues: (1) should the arbitrator or the court decide the question of the effect of the insolvency of the tortfeasor’s insurer upon uninsured motorist coverage; and (2) does the undisputed fact that the tortfeasor’s insurer became insolvent more than one year after the accident preclude coverage even when the insured commenced an action against the tortfeasor within one year of the accident?

We issued an alternative writ on October 21, 1993, and set the matter for…