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Tuesday, June 7, 2005

Cases: Texas law applies to Texas policy

Texas_flag_2 Texas law governs an automobile insurance agreement between a Texas insured and a Texas insurer, even though the vehicle was garaged in Louisiana, the driver claiming reimbursement was a resident of Louisiana, and the accident occurred in Oklahoma, ruled the U.S. Court of Appeals for the Tenth Circuit in a recent case.

In the case, the Louisiana-based employee of a Texas company was involved in an accident while driving an Avis rental car in Oklahoma.  The other driver's insurance was inadequate, so the employee sought to recover under the employer's uninsured motorist policy.  That policy, however, limited coverage to cars owned by the employer and garaged in states with compulsory UIM coverage.

The employee argued that under Louisiana law the limitations were unenforceable, but the court, applying Oklahoma choice-of-law rules, held that Texas law applied, and the restriction was valid.

Papa v. Noone, No. 04-5106 (10th Cir. May 26, 2005).

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