State Farm Mutual Automobile Insurance v. Universal Underwriters Insurance

MILLER, Justice:

In this case, we are asked whether an automobile dealer’s liability policy has primary coverage for an accident involving a car loaned by the dealer to a customer in the regular course of business.

I

Honeycutt Pontiac-Buick-GMC is a motor vehicle dealership located in Logan, West Virginia. On December 6, 1986, Alex P. Bucci drove his 1985 Pontiac automobile to the dealership for repairs. The dealership provided Bucci with a temporary substitute vehicle for his use while the repairs were made. In his use of the substitute, Bucci negligently pulled from a parking lot and struck…