State Farm Mutual Automobile Co. v. Colby and Lamotte

¶ 1. This case requires us to determine whether the omnibus clause in a specific automobile insurance policy provides coverage to a permittee to whom the insured owner loans the car when that first permittee is subject to a negligent entrustment claim for loaning the car to a second permittee. A vehicle owner entrusted her car keys to defendant, who in turn passed them along to another driver. The driver was involved in a fatal, single-car accident and the driver’s estate sued defendant for negligent entrustment. Defendant sought coverage under the vehicle owner’s automobile insurance policy.…