Underwood

This case concerns an automobile liability insurance policy that excludes coverage for bodily injury to an insured as well as to the residents of the insured’s household, and how that exclusion affects injured children of divorced parents.

National Automobile & Casualty Insurance Company (National) appeals from summary judgments in favor of Bruce Bonner (Bruce) and Lorrie Underwood (Lorrie) and from the denial of its motion for summary judgment. We affirm.

Background

On March 23, 1989, Lorrie was involved in an automobile accident that resulted in injuries to her two children who were riding as passengers. Bruce, Lome’s ex-husband and the children’s father, filed suit individually and on the children’s behalf against Lorrie. Lome’s insurance company, National, filed a declaratory relief action against Lorrie and Bruce asserting it had no duty to indemnify or defend Lorrie under her policy. Lome’s policy excluded coverage for bodily injury to an insured. The policy defined an insured as “the named [ijnsured and any resident of the same household.” National claimed the children were excluded under the policy, as they were residents of Lome’s household.

Lome and Bruce…