Litz v. State Farm Fire and Casualty Co.

RAKER, Judge.

The primary issue we must decide in this case is whether the “business pursuits” exclusion in a homeowner’s liability insurance policy relieves the insurer from its duty to defend an innocent spouse who does not participate in the business pursuit of the other spouse against a suit brought by a third party who allegedly suffered injuries arising out of the business pursuit.

I

This appeal arises out of a declaratory judgment action filed by Respondent, State Farm Fire and Casualty Company (“State Farm”) to determine its obligation to defend and indemnify Petitioners, David and…