The opinion of the court was delivered by: Dale S. Fischer United States District Judge
FINDINGS OF FACT AND CONCLUSIONS OF LAW
The matter came on for trial before the Court sitting without a jury, on December 1, 2009. Following the presentation of evidence and argument, the matter was taken under submission. The Court now makes the following findings of fact and reaches the following conclusions of law.
1. Plaintiff Allstate Insurance Company issued Personal Umbrella Policy Number 914675574 ("the Policy") to Oliver Clark, III and Jean Clark.
2. On July 23, 2009, Allstate filed this declaratory relief action, seeking a determination that it is not required to provide liability coverage to Defendant Paul Richard Gassmann under the Policy as an additional insured resident relative of Mr. Clark's household at the time of the accident.
3. The Policy was in effect on April 28, 2007, the date of the accident that gives rise to this litigation.
4. The Policy provides that Allstate will pay damages of up to $5,000,000 that an insured person becomes legally obligated to pay because of bodily injury, personal injury or property damage arising from an occurrence.
5. The policy definition of "insured person" includes "any person related to [the insured or the insured's resident spouse] by blood, marriage or adoption who is a resident of [the insured's] household." "General Provisions" on page 2 of the Policy.
6. The Policy does not include definitions for the terms "resident" or "household."
7. The Policy coverage includes "an occurrence arising only out of . . . [p]ersonal activities of an insured person, including the permissive use of a land vehicle or watercraft owned by an insured person." Id. at 5 (first paragraph under "Losses We Cover Under Coverage XL").
8. The Policy exclusions include that the Policy will not apply "[t]o any occurrence arising out of bodily injury or personal injury to an insured person" or "[t]o property damage to any . . . property owned by an insured person." Id. at 6 (paragraphs 6 and 7 under "Exclusions -- Losses We Do Not Cover Under Coverage XL").
9. Gassmann, whose date of birth is August 7, 1987, is a blood relative of Jean Clark and has always had a close relationship with his grandparents, Oliver and Jean Clark, who played a major role in raising him. The Clarks' home is located at 16601 Carousel Lane, Huntington Beach, which is also the insured address.
10. Prior to 1999, Gassmann resided with his mother in the Long Beach area, and visited his grandparents on a frequent basis.
11. Between 1999 and 2001, Gassmann attended boarding school in Anaheim, and at the New Mexico Military Institute in New Mexico. His grandparents paid for this schooling and associated expenses. Gassmann spent vacation and break time at his grandparents' home.
12. Between 1999 and 2001, while Gassmann was attending boarding school, he resided almost exclusively with his grandparents in Huntington Beach when on vacation or during breaks from school.
13. In 2001, his grandparents became Gassmann's legal guardians. They remained Gassmann's legal guardians until he reached age 18 in August 2005.
14. In 2002, Gassmann attended Marina High School in Huntington Beach. While attending Marina High School, Gassmann resided with his grandparents in Huntington Beach.
15. From September 2002 through June 2005, Gassmann attended high school in Fallbrook.
16. After graduating from high school in 2005, Gassmann worked for Custom Quality Painters in ...