American National Fire Insurance Co. v. Farmers Insurance Exchange

HOWE, Justice:

Farmers Insurance Exchange (Farmers) appeals from the trial court’s declaratory judgment in favor of American National Fire Insurance Company (National), ruling that Utah law applies to invalidate a step-down provision limiting insurance coverage in an Idaho automobile liability insurance policy.

FACTS

Early in 1994, an automobile driven by National’s insured Robert Root and owned by Farmers’ insured Bernice Larson, both Idaho residents, was involved in an accident with a motorcycle on Interstate 80 in Utah just east of the Nevada border. The motorcycle rider, Colorado resident…