Nation v. State Farm Insurance Co.

I agree that the household exclusion clause violates the legislature’s mandate of compulsory liability insurance. I would hold the clause invalid up to the amount of the statutorily required minimum coverage. Above that required amount I would permit the application of principles governing insurance contracts generally to determine the coverage in effect.

I. COMPULSORY LIABILITY INSURANCE AND THE HOUSEHOLD EXCLUSION

In 1976, Oklahoma joined the majority of states by enacting a Compulsory Insurance Law. This law, as amended in 1983, requires liability insurance as follows:

*879On an after January 1,…