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22 Sw. L. J. 433 (1968)
Is an Award of Punitive Damages Covered under an Automobile or Comprehensive Liability Policy

handle is hein.journals/smulr22 and id is 457 raw text is: IS AN AWARD OF PUNITIVE DAMAGES COVERED UNDER AN AUTOMOBILE OR COMPREHENSIVE LIABILITY POLICY? by Dewey J. Gonsoulin* T HE ORIGIN of punitive damages, called exemplary, punitory, or vindictive damages or smart money, has been traced to Biblical times.' They appeared in the English law by the eighteenth century, and were recognized generally in the United States by the end of the nine- teenth century.2 Today, all but four states-Louisiana, Massachusetts, Ne- braska and Washington-recognize punitive damages. There are three purposes or functions of punitive damages: (1) as com- pensation for the injured plaintiff; (2) as vindication by society or revenge manifested by the jury's indignation at the defendant's misconduct; and (3) as civil punishment of the miscreant defendant and as a deterrent to others.' However, the compensation function has only been recognized by three states: Connecticut,' Michigan' and New Hampshire.' The remain- ing states that permit recovery of punitive damages acknowledge that they are more of a punishment of the defendant and simply a windfall to the injured plaintiff, who has theoretically been made whole by an award of compensatory damages.' With the nature of punitive damages in mind, two inquiries present themselves: (1) does the language of an automobile or comprehensive liability policy cover punitive damages as well as compensatory damages, and (2) if so, is such a provision against public policy? I. THE AUTOMOBILE LIABILITY POLICY The standard automobile liability insurance policy provides: *A.B., Rice University; LL.B., University of Texas. Attorney at Law, Beaumont, Texas. When a man steals an ox or a sheep, and slaughters or sells it, he shall restore five oxen for the one ox and four sheep for the one sheep. Exodus 21:37. See Mayer v. Frobe, 40 W. Va. 246, 254-56, 22 S.E. 58, 61 (1895). 2 Comment, Punitive Damages and Their Possible Application in Automobile Accident Litigation, 46 VA. L. REV. 1036 (1960). 'Note, Exemplary Damages in the Law of Torts, 70 HARv. L. REV. 517 (1957). See also Northwestern Nat'l Cas. Co. v. McNulty, 307 F.2d 432 (5th Cir. 1962); Universal Indem. Ins. Co. v. Tenery, 96 Colo. 10, 39 P.2d 776 (1934); Tedesco v. Maryland Cas. Co., 127 Conn. 533, 18 A.2d 357 (1941), noted in 132 A.L.R. 1259 (1941); Carroway v. Johnson, 245 S.C. 200, 139 S.E.2d 908 (1965); Cotton v. Cooper, 209 S.W. 135 (Tex. Comm'n App. 1919), judgment adopted. 'Tedesco v. Maryland Cas. Co., 127 Conn. 533, 18 A.2d 357 (1941), noted in 132 A.L.R. 1259 (1941); Doroszka v. Lavine, 111 Conn. 575, 150 A. 692 (1930), noted in 69 A.L.R. 1279 (1930). 'McFadden v. Tate, 350 Mich. 84, 85 N.W.2d 181 (1957); Wise v. Daniel, 221 Mich. 229, 190 N.W. 746 (1922). 'Bixby v. Dunlap, 56 N.H. 456, 22 Am. R. 457 (1876); Fay v. Parker, 53 N.H. 342, 16 Am. R. 270 (1873). 'See Northwestern Nat'l Cas. Co. v. McNulty, 307 F.2d 432 (5th Cir. 1962); Universal Indem. Ins. Co. v. Tenery, 96 Colo. 10, 39 P.2d 776 (1934); Tedesco v. Maryland Cas. Co., 127 Conn. 533, 18 A.2d 357 (1941), noted in 132 A.L.R. 1259 (1941); Bernal v. Seitt, 158 Tex. 521, 313 S.W.2d 520 (1958).

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