DocketNumber: No. CV 940360249
Citation Numbers: 1995 Conn. Super. Ct. 10322, 15 Conn. L. Rptr. 76
Judges: MEADOW, S.T.R.
Filed Date: 9/12/1995
Status: Non-Precedential
Modified Date: 7/5/2016
The American National Fire Insurance Company policy contains an "other insurance" clause which states: "If there is other applicable similar insurance, we will pay only our share of the loss. Our share is that proportion that our limit of liability hears to the total of all applicable limits." The Great American Insurance Company policy contains an identical clause. The policy issued by American National Fire Insurance Company provides that coverage issues must be resolved through arbitration. The Great American Insurance Company policy, however, provides that a lawsuit must be brought to resolve coverage issues.
The plaintiff made a demand for arbitration under policy No. SDS1573660, issued by American National. The panel ruled unanimously that under that policy, No. SDS1573660, the respondent insurance company must pay the claimant Morello the policy limit of $300,000 less the previously paid basic reparations benefit of $5,000, for a total award of $295,000. The second policy, No. AVP5-27-61-06, issued by Great American Insurance Company and entitled "Antique and Collectible Vehicle Policy" was not considered by the arbitration panel in rendering its decision. Accordingly, the arbitrators refused to address the issue of proration amongst the policies.
ARGUMENTS
The defendant argues that the arbitrators failed to apply the plain language of the aforementioned "other insurance" clause contained in the American National Fire Insurance Policy and therefore erred in not determining the issue of proration. The defendant claims that American National Fire Insurance Company should only be held liable for 50% of the amount awarded by the arbitration panel. The plaintiff counters that the policies at issue were written by different subsidiaries sharing the same parent company and the plaintiff should not be harmed by the imposition of artificial proration rules. The plaintiff further argues proration could conceivably work an injustice upon him since counsel for Great American Insurance Companies has stated CT Page 10324 that coverage should be denied under policy No. AVP5-27-61-06 while seeking proration under policy No. SDS1573660.
DISCUSSION
General Statutes §
"Where judicial review of compulsory arbitration proceedings required by § 38-175c(a)(1) [the uninsured motorist statute] is undertaken under General Statutes §
In the present case, the proration sought by the defendant is based upon the "other insurance" clause of policy No. SDS1573660. The plaintiff opposes proration on the grounds that policy No. SDS1573660 and policy No. AVP5-27-61-06 were written by different subsidiaries of the same parent company, American International Insurance Companies, thus causing the "other insurance" clause and the principle of proration to become inapplicable.
"The apparent purpose of `other insurance' clauses is to make certain that one company does not pay a disproportionate amount of a loss which is to be shared with another company. There is no purpose in proration unless the `other insurance' is written by another company." United Sec. Ins. Co. v. Mason,
The Motion to Vacate the Arbitration Award is denied and the award is confirmed.