Jauregui v. Mid-Century Insurance

I dissent.

The majority refuses to enforce the clause of the insurance contract limiting the coverage of permissive users of the insured automobile on the grounds the clause is inconspicuous and unclear, and defeats the reasonable expectations of the insured.

The majority applies the requirements of conspicuity and clarity without explaining why it applies to the clause in question. Insurance contracts are subject to rules of construction and interpretation which are different from ordinary contracts. Usually being characterized as adhesion contracts, all ambiguities are interpreted in favor of…