Allstate Insurance v. Mercury Insurance

Opinion

GILBERT, P. J.

Insurance code section 11580.2, subdivision (d), provides that an insurance policy may require that uninsured motorist (UM) coverage be prorated when an insured has coverage under more than one UM policy.1 The section was designed to “avoid endless squabbles” engendered by claims made under multiple policies. (Wagner v. State Farm Mutual Auto. Ins. Co. (1985) 40 Cal.3d 460, 468 [220 Cal.Rptr. 659, 709 P.2d 462].)

Here the section did not achieve its goal. Two insurance companies make cogent arguments concerning the meaning of clauses pertaining to UM coverage in their…