O'bar v. Mfa Mutual Insurance Company

628 S.W.2d 561 (1982)

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Nature of the Case

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Facts

P's husband, Jeweral Wayne O'Bar, was killed in a vehicle accident while driving his employer's truck. P and his child received over $5,000 for his death from workers' compensation. Jeweral had an automobile insurance policy with D, and it provided $5,000 in benefits for accidental death. D refused to pay, relying on a clause in the policy which reads: REDUCTION OF AMOUNT PAYABLE -- Any amount payable under the terms of this coverage on account of death of an insured shall be reduced by the amount paid and the present value of all amounts payable on account of such death under any workmen's compenstion law, disability benefits law or any other similar law. P sued D and the trial court ruled for D. Both parties relied on Aetna Ins. Co. v. Smith which held such a reduction clause for medical and disability benefits was not void. Aetna interpreted Arkansas's no-fault insurance law, enacted in 1973. The no-fault law was enacted '. . . to make an insured whole on relatively minor automobile injury damage claims without regard to fault . . .' Aetna provided that policies must give an insured the right to certain minimum medical and hospital benefits, income disability benefits and accidental death benefits. But the insured has the right to reject in writing any one or all of such benefits. P appealed.