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784 P.2d 67

Cofer v. Morton

Supreme Court of Oklahoma

Decided December 12, 1989

Supreme Court of Oklahoma · decided 1989-12-12

Key passage — most relied on by later courts

“"A. No policy insuring against loss resulting from liability imposed by law for bodily injury or death suffered by any person arising out of the ownership, maintenance or use of a motor vehicle shall be issued, delivered, renewed, or extended in this state with respect to a motor vehicle registered or principally garaged in this state unless the policy includes the coverage described in subsection B of this section. B. The policy referred to in subsection A of this section shall provide coverage therein or supplemental thereto for the protection of persons insured thereunder who are legally entitled to recover damages from owners or operators of uninsured motor vehicles and hit-and-run motor vehicles because of bodily injury, sickness or disease including death resulting therefrom. Coverage shall be not less than the amounts or limits prescribed for bodily injury or death for a policy meeting the requirements of Section 7-204 of Title 47 of the Oklahoma Statutes, as the same may be hereafter amended; provided, however, that increased limits of liability shall be offered and purchased if desired, not to exceed the limits provided in the policy of bodily injury liability of the insured. The uninsured motorist coverage shall be upon a form approved by the Insurance Commissioner as otherwise provided in the Insurance Code ... I. Effective for forms required before April 1, 2005, the offer of the coverage required by subsection B of this section shall be in the following form whic”

quoted by 1 later decision, including Spears v. Glens Falls Insurance Co.

Relies on Moser v. Liberty Mutual Insurance Co. · Moon v. Guarantee Insurance Co. · Mann Ex Rel. Mann v. Farmers Insurance Co.

Good law ✅— No negative treatment on recordhow we know

Decided 1989-12-12

How this case has been cited

Cited by 7 later decisions — most recently December 2020

3 federal appellate · 4 state decisions

5019891990200020102020decided

Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

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ALMA WILSON, Justice,

¶1dissenting in Part II:

¶2The question is simply whether an insurer has a duty to offer an insured increased *73limits of uninsured motorist coverage and if so what is the legal effect of the insurer's failure to make the offer. 36 O.S. § 3636(B) plainly provides that “... increased limits of liability shall be offered and purchased if desired....” [emphasis added]. The legislature mandates the duty to make an offer. Our judicial function is to apply the statutory language and it is fundamental that the word “shall” is a word of command operating to impose a mandatory duty.

¶3The legal effect of the insurer’s failure to make an offer results in a reformation of the policy and an increase in available uninsured motorist coverage to an amount equal to the liability limits available under the policy. In this Court’s recent decision in Moon v. Guarantee Ins. Co., 764 P.2d 1331, 1335 (Okla.1988) we said:

Accordingly, uninsured motorist coverage is required to be offered by written provision within or supplemental to an original policy, (and if not so “offered”, then such is written into the policy by operation of law), and must likewise thereafter be waived by written rejection. Thus, the burden of proof is upon the insurer to come forward with a written rejection in order to relieve the insurer from its duty to provide the statutory uninsured motorist coverage. Allegations of oral offers of uninsured motorist coverage fall short of the tendor of proof required by 36 O.S.1981 § 3636, for there is but one statutorily sanctioned method by which the mandatory uninsured motorist coverage provided for persons insured under a liability policy may thereafter be rejected, [emphasis added.]

¶4Although Moonis distinguishable from the case at bar in that it did not address the increased limits feature of § 3636(B), I deem it controlling. In my dissenting opinion in Mann v. Farmers Ins. Co., 761 P.2d 460, 466 (Okla.1988), I reiterate that Subsection F of § 3636 which provides for written rejection of uninsured motorist coverage refers to all of Subsection B of § 3636 (i.e. the increased limits) and not just the portion of Subsection B requiring that the policy coverage be the minimum required by state law.

¶5The case at bar is distinguishable from the authority relied upon by the majority. For example, in Mann v. Farmers Ins. Co., 761 P.2d at 460, the insurer made a sufficient offer of increased limits of uninsured motorist coverage whereas in the instant case no offer was made. Furthermore, the case at bar involves a primary policy whereas this Court in Moser v. Liberty Mutual Ins. Co., 731 P.2d 406 (Okla.1986) dealt with the applicability of the requirements of § 3636 to umbrella liability policies.

¶6To reiterate my dissent in Moserat 410-11 “[t]his Court has traditionally held that an unambiguous statute should be construed in a literal way giving words their ordinary, commonly understood meaning.” It is hard to imagine words plainer than “increased limits of liability shall be offered.” Accordingly, under the provisions of our own statute, there is neither reason nor room for statutory construction. The statute unambiguously mandates the duty to offer increased limits of liability. The failure to do so renders the insurer responsible for uninsured motorist coverage in an amount equal to the bodily injury liability contained in the policy by operation of law. The legislated mandated duty is not discharged by the insured’s nebulous awareness of the availability of increased coverage. This Court should not substitute its wisdom for that of the legislature. I therefore dissent and adhere to the plain meaning of the statute.

¶7I have been authorized to state that KAUGER, J. joins in this dissenting in part II.

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