Mori

This is an appeal from a judgment entered in favor of defendant and respondent Southern General Insurance Company (Southern General or respondent), following the granting of its motion for summary judgment. We affirm.

Facts

Early in 1980 Fermín Salviejo (Salviejo) asked insurance broker James B. Ferrer III to obtain insurance coverage both for his automobile and the residential care facility he operated with his wife at their residence, known as the Salviejo Rest Home. Through Ferrer’s efforts Salviejo obtained two *101 contracts of insurance a few months later: one with Southern General for the residential care facility and the other with Farmers Insurance Group (Farmers) for the automobile.

While driving a resident of the rest home to the bus station on August 30, 1980, Salviejo was involved in a collision with a garbage truck. Adolfo Mori, an employee of the garbage collection company, died from injuries he received in the accident.

Appellants, the widow and children of Mori, filed a wrongful death action against Salviejo and obtained a stipulated judgment against him. In exchange for payment of its policy limits, Farmers obtained a covenant from appellants that…