State Farm Mutual Automobile Insurance Co. v. Kelly

BEA ANN SMITH, Justice.

The issue presented is whether the confiscation of a stolen vehicle by state authorities is an “accidental loss” under the insurance policy issued by State Farm Mutual Automobile Insurance Company, appellant, to Joel Kelly, appellee. After a bench trial on stipulated facts, the trial court rendered judgment in favor of Mr. Kelly. State Farm appeals, contending the trial court erred because: (1) Kelly’s vehicle was not a “covered auto” under the insurance policy; (2) confiscation of the vehicle was not an “accidental loss”; (3) coverage of this loss would violate public…