Appeal from judgment of the Multnomah County Circuit Judge, Norman L. Lindstedt, Judge pro tempore. 106 Or. App. 329, 807 P.2d 808 (1991). Thomas H. Tongue, of Dunn, Carney, Allen, Higgins Tongue, Portland, argued the cause and filed the petition for petitioners on review.
"Construction of an insurance policy and interpretation of unambiguous language in the policy are questions of law." Hoffman Constr. Co. v. Fred S. James Co., 106 Or.App. 329, 332, 807 P.2d 808, 810, rev. granted, 311 Or. 643, 815 P.2d 1273 (1991). "When `an insurance contract is unambiguous as to coverage, summary judgment on the issue of liability is not . . . error because there are no issues of fact as to that question.'"
In setting out the limit of liability provision, which had "amount recoverable" language similar to that used by Mission, the court pointed out in a footnote that it was not interpreting the meaning of that provision in the case of an insolvent underlyer. In cases where the insurance policies at issue used the phrase "amount recoverable," the majority of the courts have ruled that the policies, when read as a whole, were unambiguous in precluding insolvency drop down. Hoffman Construction Co. v. Fred S. James Co., 106 Or.App. 329, 807 P.2d 808 (1991) (the court ruled that if it were to accept the plaintiffs' contention that "amount recoverable" means "collectible," the Loss Payable provision would be rendered meaningless); Morbark Industries, Inc. v. Western Employers Ins. Co., 170 Mich. App. 603, 429 N.W.2d 213 (1988) (amount recoverable wording on declarations page clarified by insuring agreement); Radiator Specialty Co. v. First State Ins. Co., W.D.N.C., 651 F.Supp. 439 (1987) (amount recoverable language in limits of liability provision is unambiguous when read in conjunction with the insuring agreements, definitions, and conditions of the policy); Southeast Atlantic Cargo Operators, Inc. v. First State Ins. Co., 197 Ga. App. 371, 398 S.E.2d 264 (1990) (amount recoverable language on the declarations page limits of liability section does not negate more specific provisions in the body of the policy); Werner Industries v. First State Ins. Co., 112 N.J. 30, 548 A.2d 188 (1988) (taken in its entirety, the policy, which covered co
If the language in an insurance policy is unambiguous, then construing the contract is a question of law for the court. Timberline Equip. v. St. Paul Fire and Mar. Ins., 281 Or. 639, 643, 576 P.2d 1244 (1978); Hoffman Construction Co. v. Fred S. James Co., 106 Or. App. 329, 332, 807 P.2d 808 (1991). For losses to be covered under the Comprehensive Personal Effects Coverage provisions, the personal property must have been located either in plaintiff's mobile home or in a fully enclosed "adjacent structure located on [their] premises."