Grandmother Not Covered By Insurer After Being Held Liable Under Financial Responsibility Form for Grandson
This past January, the Indiana Court of Appeals ruled on a case coming out of Laporte County. The case dealt with a grandmother who signed the state required "financial responsibility form" for her grandson when he turned 16. At that time, the grandson was living with his grandmother and she was his legal guardian. She had bought her grandson a new car for his 16th birthday and registered the car in his name.
Pursuant to IC 9-24-9-3, Indiana requires that a minor's driver's license application be signed by a parent or legal guardian who promises to assume certain statutory obligations on behalf of the minor. Under IC 9-24-9-4(a), "[a]n individual who signed an application for a permit or license under this chapter agrees to be responsible jointly and severally with the minor applicant for any injury or damage that the minor applicant causes by reason of the operation of a motor vehicle if the minor applicant is liable in damages.”
Unfortunately, the grandson was involved in a car accident where he was the driver and his passenger at the time was injured. Since the grandson was still a minor, the passenger filed a complaint against the grandmother to hold her financially responsible. After a bench trial, the trial court found the grandson to be 100% at fault and awarded the passenger over $99,000 against the grandmother.
When the accident occurred, the grandmother had an automobile insurance policy with Motorists Mutual. Under that policy, three cars were named, but not her grandson's new car which he was driving at the time of the accident; it was covered under another policy with a different insurer. Following the bench trial, the plaintiff sought to collect on the grandmother's insurance policy with Motorists Mutual through proceedings supplemental. Motorists Mutual argued that the grandmother did not have liability coverage under the policy in this situation; however, the trial court ruled that she did in granting her motion for summary judgment.
On appeal, the Indiana Court of Appeals held that even though Motorists Mutual agreed to insure grandmother against liability arising from her executing the financial responsibility form and any injuries her grandson causes to others while driving, the fact that he was driving a car not included under the grandmother's insurance policy with Motorists Mutual excluded her from coverage.
See Motorists Mut. Ins. Co. v. Wroblewski, 898 N.E.2d 1272 (Ind. Ct. App. 2009).
