Adams v. Covenant Security Insurance Company

CLEMENS, Commissioner.

Under what circumstances can it be said one automobile “replaces” another? The question arises under a public liability automobile insurance policy covering a specified automobile but extending coverage to a newly acquired automobile that “replaces” the specified automobile. Plaintiff contends this covered a new automobile used for the same purposes as the old automobile, even though the old one was still operable and had been retained by the insured solely for the purpose of sale. Conversely, the defendant contends the new automobile was not covered because the old…