Allen WINDRIM, Appellee, v. NATIONWIDE INSURANCE COMPANY, Appellant.
Supreme Court of Pennsylvania.
May 16, 1994.
Rearguments Denied June 29 and July 14, 1994.
641 A.2d 1154
Edwin P. Smith, Philadelphia, for A. Windrim.
Peter J. Hoffman, Philadelphia, for amicus-defendant Inst.
OPINION
NIX, Chief Justice.
Nationwide Insurance Company (“Nationwide“) appeals from the Order of the Superior Court affirming the Order of the Court of Common Pleas compelling uninsured motorist arbitration and invalidating an automobile insurance policy provision which excludes uninsured motorist benefits to a person operating his own uninsured automobile at the time of the accident. We granted allocatur in this case to determine whether public policy precludes the enforcement of such a provision. For the reasons that follow, we reverse and hold
Appellee, Allen Windrim, was injured as a result of a motor vehicle accident on December 3, 1989. Windrim has alleged, and Nationwide has denied, that the accident was the result of the negligence of an unidentified hit-and-run driver. At the time of the accident, Windrim was the sole owner and operator of his uninsured automobile. Windrim subsequently sought uninsured motorist coverage from Nationwide contending that he was insured pursuant to his mother‘s policy with Nationwide because he was a relative residing in his mother‘s household. Nationwide denied coverage based upon an exclusionary provision in Windrim‘s mother‘s policy which provides in pertinent part:
This Uninsured/Underinsured Motorists insurance does not apply as follows:
....
4. It does not apply to bodily injury suffered while occupying or from being hit by a motor vehicle owned by you or a relative living in your household, but not insured for Uninsured or Underinsured Motorists coverage under this policy.
Record at 13a.
Windrim filed a Motion to Compel Uninsured Motorist Arbitration contending that the foregoing provision was invalid under the Uninsured Motorist Act.1 Nationwide filed an
The court entered an order granting Windrim‘s Motion to Compel Arbitration and denying Nationwide‘s counterclaim for declaratory relief. It also declared the exclusionary provision invalid based on Bankes v. State Farm Mut. Auto. Ins. Co., 216 Pa.Super. 162, 264 A.2d 197 (1970). In Bankes, the Superior Court struck down a similar exclusionary provision on the ground that it was repugnant to the
On appeal to the Superior Court, Nationwide argued that the trial court erroneously relied on Bankes because the
The Superior Court disagreed with Nationwide‘s contentions and found “no change in the legislative intent underlying the Uninsured Motorist Act to that underlying the MVFRL. The legislative intent under both [was] to ensure [that] own-
Judge Popovich dissented from the majority and indicated that his “review of the MVFRL disclose[d] that it [was] silent on the issue of whether the operator of uninsured vehicle may recover uninsured motorist benefits under a policy applicable to another vehicle owned by the driver or a relative residing with the driver.” Id. at 160, 602 A.2d at 1359 (Popovich, J., dissenting). In addition, Judge Popovich found the reasoning of the Court of Appeals for the Third Circuit to be very persuasive in the factually similar case of Nationwide Mut. Ins. Co. v. Hampton, 935 F.2d 578 (1991). Id., 412 Pa.Super. at 161, 602 A.2d at 1359. In Hampton, the owner/operator of an uninsured motorcycle attempted to recover underinsured benefits from his father‘s insurance policy after he was injured in an accident. The insurance policy contained an exclusion identical to the one in the instant case.
The Hampton court conducted an extensive review of the legislative history of the MVFRL as well as prior, relevant decisions in Pennsylvania. In reversing the order allowing the owner/operator to recover benefits under his father‘s policy, the court stated “[t]he MVFRL embodies a new policy, expressed in
We agree with both Judge Popovich and the Third Circuit that the MVFRL reflects a heightened concern by the General Assembly toward the increasing consumer cost of automobile insurance attributable in part to motorists who ignore the legal requirement that they insure their vehicles. See House
In passing the [MVFRL], the Legislature was primarily concerned with the rising consumer cost of automobile insurance, created in part by the substantial number of uninsured motorists who contributed nothing to the pool of insurance funds from which claims were paid. The [MVFRL] has the effect of requiring all owners of registered vehicles to share in the burden of insurance before they can obtain the benefits. By denying benefits to a certain class of people—those not insuring their registered vehicles—the [MVFRL] encourages the purchase of insurance by all owners who register vehicles which can be legally operated on the highways.
Allen v. Erie Ins. Co., 369 Pa.Super. 6, 10, 534 A.2d 839, 840-41 (1987) (citations omitted).
Despite the foregoing, the Superior Court‘s analysis in the instant case relied almost exclusively on its decision in Henrich v. Harleysville Ins. Co., 403 Pa.Super. 98, 588 A.2d 50 (1991), aff‘d, 533 Pa. 181, 620 A.2d 1122 (1993). Henrich involved the issue of whether
The court in Henrich specifically stated that the plaintiff was not “contractually precluded” from recovering uninsured motorist benefits. Henrich, 403 Pa.Super. at 103, 588 A.2d at 52. It did not analyze the public policy aims of the MVFRL because it was only required to interpret the actual language of
On appeal, this Court affirmed the decision of the Superior Court. Henrich v. Harleysville Ins. Co., 533 Pa. 181, 620 A.2d 1122 (1993). We observed that the MVFRL and
We are now, however, confronted with a situation where an individual was operating his own uninsured vehicle at the time of the accident. In addition, the insurance policy under which Appellee Windrim seeks recovery contains an unambiguous exclusionary provision, unlike the policy in Henrich which contained no such exclusion. Henrich is therefore distinguishable from the instant case. Accordingly, we find that the Superior Court erroneously relied upon Henrich in concluding that the legislative intent underlying the
Appellee Windrim has never argued that the exclusionary language in his mother‘s policy is unclear or ambiguous. Rather, he contends that the provision is void as applied to him because it violates public policy. A clear and unambiguous contract provision must be given its plain meaning, unless to do so would be contrary to a clearly expressed public policy. Antanovich v. Allstate Ins. Co., 507 Pa. 68, 76, 488 A.2d 571, 575 (1985). Furthermore,
“[i]t is only when a given policy is so obviously for or against the public health, safety, morals or welfare that there is a virtual unanimity of opinion in regard to it, that a court may constitute itself the voice of the community in [declaring that policy to be against public policy].”
Guardian Life Ins. Co. v. Zerance, 505 Pa. 345, 354, 479 A.2d 949, 954 (1984) (quoting Mamlin v. Genoe, 340 Pa. 320, 325, 17 A.2d 407, 409 (1941)). As stated previously, the legislative history of the MVFRL indicates that the primary concerns of the General Assembly in repealing the
We therefore hold that the exclusion in Windrim‘s mother‘s insurance policy is a valid and enforceable provision. Our conclusion is bolstered by the fact that Windrim‘s argument, if accepted, would actually contravene the legislative intent behind the MVFRL by serving as a disincentive to insure vehicles. As Judge Popovich observed, “[a] possible result ... is that many individuals owning several vehicles will purchase coverage for only one of them. Likewise, relatives living with an insured will be less inclined to purchase insurance for their vehicles, instead seeking uninsured motorist coverage under their relative‘s insurance policy.” Windrim, 412 Pa.Super. at 162, 602 A.2d at 1360 (Popovich, J., dissenting). Clearly, the General Assembly did not envision nor intend such abuses of the system when it enacted the MVFRL.
Finally, Windrim contends that the exclusionary provision in the instant case is of no legal effect because it was not approved by the Pennsylvania Insurance Commissioner pursuant to
Accordingly, the Order of the Superior Court is reversed and the matter remanded to the Court of Common Pleas for proceedings consistent with this opinion.
LARSEN, J., did not participate in the decision of this case.
CAPPY, J., files a concurring opinion.
MONTEMURO, J., who was an appointed Justice of the Court at the time of argument, participated in the decision of this case in his capacity as a Senior Justice.*
CAPPY, Justice, concurring.
I concur in the result reached by the majority but write separately because I believe the majority misconstrues this Court‘s decision in Henrich v. Harleysville Ins. Co., 533 Pa. 181, 620 A.2d 1122 (1993), and in so doing obfuscates the only true distinction between that case and the instant case.
In both Henrich and the case sub judice an owner of a registered but uninsured vehicle was injured, allegedly as a result of another uninsured driver. In Henrich, the injured person was a passenger in another uninsured vehicle whereas here, the injured person was operating his own uninsured vehicle, but was allegedly injured when his vehicle was struck by an unidentified hit and run vehicle. In both cases, the injured uninsured person sought to recover uninsured motorist benefits pursuant to a resident relative‘s policy of motor vehicle insurance. While the policy at issue in the case sub judice contains a specific exclusion precluding the recovery sought, the policy in Henrich contained no such exclusion.
The majority here concludes that because the case sub judice is factually distinguishable from Henrich, the Superior Court erred in relying on its decision therein. See, Henrich v.
In Henrich we were asked to determine whether the
In analyzing the issue of whether Henrich should be precluded from recovering uninsured motorist benefits because she owned a registered but uninsured vehicle, the Superior Court first looked to the insurance policy itself, noting that Henrich was not contractually precluded from recovering uninsured motorist benefits. Utilizing principles of statutory construction, the Superior Court then applied the maxim ”expressio unius est exclusio alterius” (the mention of one thing in a statute implies the exclusion of others not expressed), concluding therefrom that because the legislature did not expressly include a preclusion similar to that of
In affirming the decision of the Superior Court, a majority of this Court3 first acquiesced in that court‘s reasoning that, since
At
75 (Pa.C.S.) § 1702 , the term “first party benefits” is defined as “medical benefits, income loss benefits, accidental death benefits and funeral benefits.” The MVFRL treats first party benefits separately from uninsured motorist benefits. First party benefits are addressed in Subchapter B of the statute, while uninsured motorist benefits are addressed
in Subchapter C.
Section 1714 is located in Subchapter B, and Subchapter C contains no similar exclusion. The Superior Court reasoned in the instant case that since1714 specifically states that owners of uninsured but registered motor vehicles are precluded from recovering first party benefits, sound statutory construction, based on the principle expressio unius est exclusio alterius (the express mention of one meaning in a statute implies the exclusion of other meanings), requires the conclusion that the legislature implicitly intended not to preclude that same class of claimants from recovering uninsured motorist benefits. While we can find no fault in the Superior Court‘s logic, we think that the instant case can be disposed of on both narrower and more fundamental grounds.
Henrich, 533 Pa. at 184-185, 620 A.2d at 1124. The majority then went on to conclude that there was nothing in the Act itself nor the public policy underlying the Act which precluded Henrich from recovering uninsured benefits.
Here, however, the issue is not whether the Act and its policy preclude recovery by Windrim, but rather whether the clear and unambiguous exclusion contained in his mother‘s policy violates the Act or the public policy underlying same. The resolution of this issue does not depend on whether the claimant was driving or riding in his or her own registered but uninsured vehicle. The only pertinent inquiry is whether the contractual exclusion is void as against public policy. The focus of inquiry here is, thus, entirely distinct from that of Henrich and, for that reason alone, Henrich is inapplicable to the instant decision.4
This Uninsured/Underinsured Motorists insurance does not apply as follows ...
4. ... It does not apply to bodily injury suffered while occupying or from being hit by a vehicle owned by you or a relative living in your household, but not insured for Uninsured or Underinsured Motorists coverage under this policy.
As the majority here states, a plain and unambiguous provision in an insurance contract provision such as the one at issue here will be held invalid only where that provision is clearly violative of the public policy. See, Antanovich v. Allstate Ins. Co., 507 Pa. 68, 76, 488 A.2d 571, 575 (1985). It is generally recognized that a primary consideration prompting the repeal of the
Uninsured Motorist Coverage.—Uninsured motorist coverage shall provide protection for persons who suffer injury arising out of the maintenance or use of a motor vehicle and are legally entitled to recover damages therefor from owners or operators of uninsured motor vehicles.
(3) an unidentified motor vehicle that causes an accident resulting in injury provided that the accident is reported to the police ... and the claimant notifies his insurer within 30 days ... that the claimant ... has a legal action arising out of the accident. (Emphasis added)
Accordingly, and but for the exclusion contained in the policy at issue, if it were ultimately determined that there was, indeed, a hit-and-run driver who caused the accident and Windrim‘s resulting injuries, the fact that Windrim was driving his own uninsured vehicle does not, standing alone, bear on the issue of whether he was entitled to uninsured motorist coverage.
For the reasons set forth above, I concur in the result reached by the majority, but I am constrained to disassociate myself with the reasoning and rationale utilized in the majority opinion.
Notes
No motor vehicle liability policy of insurance insuring against loss resulting from liability imposed by law for bodily injury or death suffered by any person arising out of the ownership, maintenance or use of a motor vehicle shall be delivered or issued for delivery in this State with respect to any motor vehicle registered or principally garaged in this State, unless coverage is provided therein or supplemental thereto in limits for bodily injury or death for the protection of persons insured thereunder who are legally entitled to recover damages from owners or operators of uninsured motor vehicles because of bodily injury, sickness or disease, including death therefrom....
An owner of a currently registered motor vehicle who does not have financial responsibility or an operator or occupant of a recreational vehicle not intended for highway use, motorcycle, motor-driven cycle, motorized pedalcycle or like type vehicle required to be registered under this title cannot recover first party benefits.
An owner of a currently registered motor vehicle who does not have financial responsibility or an operator or occupant of a recreational vehicle not intended for highway use, motorcycle, motor-driven cycle, motorized pedalcycle or like type vehicle required to be registered under this title cannot recover first party benefits.
It shall be unlawful for any insurance company ... doing business in this Commonwealth, to issue, sell, or dispose of any policy, contract, or certificate, covering life, health, accident, personal liability, fire, marine, title, and all forms of casualty insurance ... until the forms have been submitted to and formally approved by the Insurance Commissioner....