Integon Indemnity Corporation v. Canal Insurance Company

Full title: INTEGON INDEMNITY CORPORATION v. CANAL INSURANCE COMPANY

Court: Supreme Court of Georgia

Date published: Feb 24, 1987

Facts

he trial court granted summary judgment to Integon Indemnity Corporation (Integon) in a declaratory judgment action involving coverage of one of the company’s insureds. The Court of Appeals reversed. Canal Ins. Co. v. Integon Indem. Corp., 180 Ga. App. 670( 350 S.E.2d 250) (1986). We reverse the Court of Appeals.

On March 12, 1982, Stag, Inc., a used car dealer, she permitted Cynthia Robinson to drive a Dodge Omni off its sales lot. The Omni collided with a vehicle driven by Nellie Williamson. Williamson and her passengers were injured and filed lawsuits against Robinson.

Stag’s Omni was insured by Canal Insurance Company (Canal). Robinson owned a Ford, which was insured by Integon. Robinson’s policy with Integon limited coverage to vehicles owned by Robinson or temporary substitutes used while Robinson’s vehicle was being repaired. At the time of Robinson’s collision, her husband was using their Ford.

Issue

Decision

In Georgia, the legislature considered insurance policies that could limit coverage to vehicles listed in the insured’s policies or extend to the insured regardless of the vehicle involved in the accident. OCGA § 33-34-3 (e) states that the security and suspension requirements for bodily injury and property damage liability need not apply. Integon’s policy met the minimum coverage requirements, but it cannot be considered primary coverage under OCGA § 33-34-3 (e).

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