Appeal from Wayne, Victor J. Baum, J.
Leave to appeal denied, 396 Mich 859.
J. H. Gillis, P. J., and Quinn and R. E. Noble,* JJ.
Automobiles -- Insurance -- Basic Policy -- Uninsured Motorist Endorsements -- Exclusions -- Public Policy.
A provision in an insurance policy which excludes from uninsured motorist coverage all bodily injury to an insured while occupying an automobile, other than an insured automobile, which is owned by a named insured or any relative resident in the same household, is not void as against public policy; it is not unreasonable, nor against public policy, for an insurance company to limit the extent of its coverage when such limitation is found equally in the basic liability policy and the uninsured motorist endorsement.
The opinion of the court was delivered by: Quinn
Complaint by Clemon Priestly and Rosella Priestly against the Secretary of State, as director of the Motor Vehicle Accident Claims Fund, and the Detroit Automobile Inter-Insurance Exchange for damages arising from an automobile collision. The defendant Secretary of State moved that summary judgment for plaintiff be granted against defendant Detroit Automobile Inter-Insurance Exchange. Motion granted. The Exchange appeals.
Plaintiffs' action was for declaratory relief. The trial court granted the Secretary of State's motion for summary judgment as to Detroit Automobile Inter-Insurance Exchange (hereinafter Exchange), and it appeals.
January 18, 1972, plaintiff Clemon Priestly was the owner-driver of a 1966 Dodge which was involved in an accident with a hit-and-run vehicle. The Dodge was not insured, but Clemon had paid $45 to the Secretary of State for deposit with the Motor Vehicle Accident Claims Fund. Clemon also owned a 1969 Cadillac which was insured by Exchange under an "assigned risk" policy issued in accordance with the automobile insurance placement facility statute, MCLA 500.3301 et seq.; MSA 24.13301 et seq. Clemon applied to Exchange for uninsured motorist coverage benefits under the policy issued on the Cadillac. Exchange denied coverage and plaintiffs filed this declaratory action against Motor Vehicle Accident Claims Fund and the Exchange.
The insurance policy issued by the Exchange to Clemon and covering the Cadillac contained uninsured motorist coverage with three limiting exclusions. The pertinent exclusion reads:
"To bodily injury to an insured while occupying an automobile (other than an insured automobile) owned by a named insured or any relative resident in the same household, or through being struck by such an automobile."
This case is controlled by Nunley v Turner, 57 Mich App 473; 226 NW2d 528 (1975), *fn1 and reversal is mandated unless the Secretary of State is correct in his contention that the above quoted exclusion is void as against the public policy expressed in MCLA 500.3010; MSA 24.13010. Boettner v State Farm Mutual Insurance Company, 388 Mich 482; 201 NW2d 795 (1972), relied on by the Secretary of State, is inapposite for reasons adequately expressed in Nunley, supra, to which the reader is referred.
The basic policy involved, under "insuring agreement V", covered use of other automobiles. Subsection ...