American National General Insurance v. Paul Gerald Solum, et al.

Appellant American National General Insurance Company (American National) brought this declaratory action against its insureds, respondents Paul and Helen Solum, to determine whether it was obligated to provide uninsured motorist coverage. American National now challenges the jury’s finding that respondents’ son, Daniel Solum, was the owner of the involved vehicle, a Chevy S-10 truck (Chevy). American National argues that because Helen Solum applied for and received the certificate of title, she complied with the statutory requirements setting out the procedures for transferring a vehicle and extrinsic evidence to the contrary should not have been allowed.

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Daniel Solum had been arrested for driving while intoxicated and was concerned that the Chevy’s license plates would be confiscated. On April 12, 1995, Daniel transferred the certificate of title for the Chevy to his mother, but retained full use of it. The parties acknowledge that the transfer was intended solely to protect the Chevy’s license plates from impoundment.

Daniel and his father began operating a farming partnership in 1996. Daniel drove to the farmstead daily and left the Chevy in front of the house while working in the field. On January 31, 1997, Paul Solum was in an accident while driving the Chevy. American National tendered coverage under Paul’s uninsured motorist benefits because Daniel had allowed the Chevy’s insurance to lapse. The insurance company defended Paul under a reservation of coverage. After an investigation, however, American National discovered the Chevy’s certificate of title listed Helen Solum as owner and refused uninsured motorist coverage.

American National claimed that the policy providing Paul Solum’s uninsured motorist benefits did not cover its insured while occupying a motor vehicle that he owned or leased but failed to insure. Because Paul was driving a vehicle owned by his wife, but not listed under their insurance policy, he is excluded from coverage under his policy.

After considering extrinsic evidence, the jury found that Daniel Solum owned the Chevy. On appeal, American National argues that because the Solums complied with the certificate of title transfer statute, extrinsic evidence should not have been allowed to challenge ownership.

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Click the case caption above for the full text of the Court's opinion.

Reversed.

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Reported by Kent Morlan