241 Conn. 792 | Conn. | 1997
Opinion
This appeal requires us to determine whether, under General Statutes § 14-60(a),
The following undisputed facts are relevant to this appeal. On December 31, 1992, Jim’s Auto loaned to Ralph Masselli a motor vehicle for the purpose of taking a test drive. The plaintiff, Masselli’s brother-in-law, accompanied Masselli on the test drive and was injured
The plaintiff sought uninsured motorist benefits under the policy issued to Jim’s Auto by the defendant, but the defendant denied coverage. Thereafter, the plaintiff applied to the trial court for an order to proceed with arbitration. The trial court granted the application. On December 13, 1995, a panel of three arbitrators conducted a hearing to determine whether the defendant was required to provide primary uninsured motorist coverage to the plaintiff. At the hearing, both the plaintiff and the defendant stipulated that a question of law existed as to the applicability of § 14-60 (a) to the determination of whether the defendant’s uninsured motorist insurance was primary. The parties also agreed throughout the proceedings that the uninsured motorist coverage provided by the defendant to the dealer plainly applied, as a contractual matter, to the plaintiff. The only question before the arbitrators was whether the terms of § 14-60 (a) abrogated the defendant’s contractual obligation under the circumstances of this case.
The arbitration panel concluded that the defendant was required to provide primary uninsured motorist coverage to the plaintiff.
On appeal, the defendant claims that the trial court improperly upheld the arbitration panel’s conclusion that the defendant should provide primary uninsured motorist coverage to the plaintiff. The defendant argues that, under § 14-60 (a), the automobile insurance policy issued to Masselli as the borrower of the loaned motor vehicle is the primary source of uninsured motorist coverage for the plaintiff. We are unpersuaded and, accordingly, we affirm the judgment of the trial court.
The defendant’s claim requires us to decide for the first time whether, in setting forth the priority of a borrower’s liability and property insurance, § 14-60 (a)
We note at the onset that the legislature has imposed broad liability for many years on lenders of automobiles for injuries arising out of the misuse of their automobiles. See, e.g., General Statutes § 14-154a; Gionfriddo v. Avis Rent A Car System, Inc., 192 Conn. 280, 472 A.2d 306 (1984). Because the plaintiff’s injury resulted from the misuse of a third party’s automobile, the legislative objective embodied in § 14-154a is not directly implicated in this case. Nonetheless, the legislature’s broad policy of holding lenders responsible for injuries associated with the use of their automobiles directs us to construe narrowly those statutes that limit lender liability.
With this principle in mind, we consider the language of the statute. Section 14-60 (a) permits an automobile dealer to lend a motor vehicle for the purpose of demonstration “provided such person shall furnish proof to the dealer or repairer that he has liability and property damage insurance which will cover any damage to any person or property caused by the operation of the loaned motor vehicle . . . .” (Emphasis added.) This clause has been part of § 14-60 (a) since 1959; see Public Acts 1959, No. 499, § 1; and it emphasizes the responsibility of the borrower’s insurer for any damage caused
As the defendant concedes, although § 14-60 (a) establishes the priority of a borrower’s automobile liability and property insurance, the statute is silent about uninsured motorist insurance. The defendant nevertheless argues that, because the legislature has required uninsured motorist insurance to be included in all automobile insurance liability policies since 1967, the references in § 14-60 (a) to liability and property insurance must be read to include uninsured motorist coverage. We disagree.
The Connecticut uninsured motorist statute, § 38a-336, formerly General Statutes (Rev. to 1989) § 38-175c,
A careful analysis of the language and legislative history of §§ 14-60 (a) and 38a-336 persuades us, to the contraiy, that the legislature did not intend the references to liability and property insurance in § 14-60 (a) to include uninsured motorist coverage. First, we note as a general matter that uninsured motorist insurance operates upon a different set of principles from those upon which automobile liability and property insurance are premised, and that uninsured motorist insurance protects the named insured against risks that are fundamentally different from liability and property insurance.
Second, the text of the uninsured motorist statute provides compelling support for our conclusion that the legislature did not intend to include uninsured motorist coverage within the ambit of § 14-60 (a). Subsection (d) of § 38a-336, which became effective on January 1, 1994, provides in relevant part: “If a person insured for uninsured and underinsured motorist coverage is an occupant of a nonowned vehicle covered by a policy also providing uninsured and underinsured motorist coverage, the coverage of the occupied vehicle shall be
Finally, we are unpersuaded that a construction of § 14-60 (a) to include uninsured motorist coverage would serve to effect the legislative policy embodied in § 14-60 (a). In providing that the borrower’s liability and property insurance is to be the primary source of coverage, § 14-60 (a) reflects the legislative effort to encourage careful driving of motor vehicles loaned by
In light of the plain language, history and legislative purpose of §§ 14-60 (a) and 38a-336 (d), we conclude that the legislature did not intend to include uninsured motorist coverage within the liability and property insurance coverage provisions of § 14-60 (a). The defendant’s sole claim on appeal is that the arbitration panel failed to apply § 14-60 (a) in deciding that the defendant was required to provide primary uninsured motorist coverage to the plaintiff. Having concluded that § 14-60 (a) has no bearing on the resolution of this issue, we affirm the trial court’s decision not to vacate the arbitrators’ award.
The judgment is affirmed.
In this opinion the other justices concurred.
General Statutes § 14-60 (a) provides: “No dealer or repairer may rent or allow or cause to be rented, or operate or allow or cause to be operated for hire, or use or allow or cause to be used for the purpose of conveying passengers or merchandise or freight for hire, any motor vehicle registered under a general distinguishing number and mark. No dealer or repairer may loan a motor vehicle or number plate or both to any person except for the purpose of demonstration of a motor vehicle, or when a motor vehicle owned by or lawfully in the custody of such person is undergoing repairs, or when such person has purchased a motor vehicle, the registration of
Arbitrators Daniel E. Brennan, Jr., and Richard Mulrooney filed the majority decision. Arbitrator Carl E. Celia dissented and filed a separate opinion.
General Statutes § 38a-336 (d) provides in relevant part: “If a person insured for uninsured and underinsured motorist coverage is an occupant of a nonowned vehicle covered by a policy also providing uninsured and underinsured motorist coverage, the coverage of the occupied vehicle shall be primary and any coverage for which such person is a named insured shall be secondary. All other applicable policies shall be excess. The total amount of uninsured and underinsured motorist coverage recoverable is limited to the highest amount recoverable under the primary policy, the secondary policy or any one of the excess policies. The amount paid under the excess policies shall be apportioned in accordance with the proportion that the limits of each excess policy bear to the total limits of the excess policies. If any person insured for uninsured and underinsured motorist coverage is an occupant of an owned vehicle, the uninsured and underinsured motorist coverage afforded by the policy covering the vehicle occupied at the time of the accident shall be the only uninsured and underinsured motorist coverage available.”