How have courts interpreted the interpretation of a motor vehicle insurance contract in the context of an arbitration?

California, United States of America


The following excerpt is from Pacific Gas and Elec. Co. v. Superior Court (Anacapa Oil Corp.), 277 Cal.Rptr. 694, 6 Cal.App.4th 207 (Cal. App. 1991):

This tendency continued in Campbell v. Farmers Ins. Exch. (1968) 260 Cal.App.2d 105, 67 Cal.Rptr. 175. An arbitrator made an award under an uninsured motorist insurance provision which the insurance company contended was greater than the policy limits. The court found that the arbitration clause did not encompass arbitration of disputes concerning the interpretation of the insurance contract. (Id. at p. 111, 67 Cal.Rptr. 175.) The submission agreement put in issue entitlement to the amount owing under the contract and the court held that an award in excess of the unambiguous limit of the policy was not one under the contract. It accepted the reading of

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