Allstate Insurance v. Government Employees Insurance

Lewis, Justice:

This is an action for declaratory judgment to determine coverage under the “replacement” provisions of an automobile liability insurance policy.

Defendant Government Employees Insurance Company (Geico) issued a policy of automobile liability insurance to defendant Joseph Sinclair (insured) on November 1, 1969, covering a 1961 Chevrolet automobile. The policy contained a provision which, without the necessity of notice to Geico, automatically extended coverage to a vehicle subsequently acquired by the insured during the policy period, if “it replaces an owned vehicle.”

The…