Nation v. State Farm Insurance Co.

This is a claim against State Farm Insurance Co. under three automobile liability policies. Each policy contained a “household exclusion”, providing that the liability insurance does not cover injury to “any member of the family of an insured residing in the same household of the insured.” The question is whether that exclusionary clause runs counter to the Oklahoma statute requiring minimum limits of liability insurance as a condition of operating a vehicle. Under the facts of this case, and as to the policies in question, we find that the statute does require invalidation of the household…