Farmers Insurance Group v. Reed

DONALDSON, Chief Justice,

concurring and dissenting.

I believe that the household exclusion policy provision is voided only to the extent of the Motor Vehicle Safety Responsibility Act. The minimum required insurance limits for Idaho are $25,000/$50,000 under I.C. § 49-1521. Furthermore, I.C. § 49-1521(g) states that any insurance in excess of the mandated amount “shall not be subject to the provisions of this Act.” It is apparent that the legislature did not wish to impair the obligation of contract for this and other exclusions except to the extent it violates the statutory requirements. Dewitt v. Young, 229 Kan. 474, 625 P.2d 478 (1981); State Farm Mutual Automobile Insurance Co. v. Shelly, 394 Mich. 448, 231 N.W.2d 641 (1975). The additional coverage was voluntary and not controlled by the provisions of the Act. Thus, the liability, if any, of the defendant for coverage in excess of that required by the Act should be judged according to the terms and conditions of the policy.