Royal-Globe Insurance v. Schultz

On August 7, 1978, while operating a moped, the defendant was involved in an accident with an automobile. The moped was not insured. However, the defendant had a policy of insurance with the plaintiff covering his 1972 automobile.1 The policy was divided into two parts: compulsory and optional insurance. Under optional insurance, coverage was provided for medical payments (Part 6) and for bodily injury caused by an under-insured automobile (Part 7). The defendant made a claim for coverage under the optional provisions of his policy.2 The plaintiff denied coverage on the basis of an exclusion…