Riel v. Harleysville Worcester Insurance
45 A.3d 561
| R.I. | 2012Background
- Robert Daniel George was struck and killed by an uninsured motorist in 2006, the decedent being sole shareholder/employee of Allied Caulking, Inc.
- Harleysville Worcester Insurance issued a commercial auto policy in 2005 listing Allied as the named insured and decedent as the only operator; the policy lacked UM coverage on its face.
- The policy’s declarations warned that coverage was subject to the policy’s terms, and the schedule of operators listed decedent as an operator but not as a named insured.
- Cormack-Routhier Agency, Inc. procured the Harleysville policy; plaintiffs alleged breach for failing to procure adequate UM coverage and sought declaratory relief.
- A trial court granted summary judgment for Harleysville and Cormack, holding decedent was not a named insured and thus not covered; plaintiffs appealed.
- The Rhode Island Supreme Court affirming held that decedent was not a named insured under the policy and that, even assuming UM coverage, decedent was not using or occupying a covered vehicle at the time of the accident.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was decedent a named insured under Harleysville policy? | Riel asserts decedent was a named insured because listed as a named operator on declarations. | Harleysville argues policy unambiguous: Allied is the named insured; decedent is not covered. | Decedent was not a named insured; policy unambiguous. |
| Does Cormack have liability for failure to procure UM coverage if decedent was not a named insured? | Even without named-insured status, Cormack breached by failing to obtain UM coverage. | No UM damages could be recovered since decedent had no coverage under the policy; no dispute of material fact remains. | Cormack’s summary judgment proper; plaintiffs lack damages and failed to show a material fact dispute. |
Key Cases Cited
- Mallane v. Holyoke Mutual Insurance Co. in Salem, 658 A.2d 18 (R.I.1995) (listing of drivers creates ambiguity about coverage; declarations warning controls)
- Martinelli v. Travelers Insurance Cos., 687 A.2d 443 (R.I.1996) (defines 'you' as named insured; corporate named insured not extended to shareholder)
- Medeiros v. Anthem Casualty Insurance Group, 796 A.2d 1078 (R.I.2002) (corporation as named insured; decedent not entitled to UM when outside insured vehicle)
- American Universal Insurance Co. v. Russell, 490 A.2d 60 (R.I.1985) (insurer's obligation to offer UM coverage; coverage may be written by operation of law)