State Farm Automobile Ass'n v. Morgan

LPLOTKIN, Judge.

This appeal concerns the enforceability of exclusionary provisions in an automobile liability policy and a rental car agency’s rental agreement precluding insurance coverage for the operation of the vehicle by an unauthorized driver. The trial court concluded that the Louisiana statutory omnibus clause, LSA-R.S. 32:900(B)(2), requires insurers to provide coverage for permissive drivers despite the existence of such exclusionary provisions. We reverse.

*347 FACTS:

On April 25, 1995, a vehicle driven by defendant Lloyd Morgan rear-ended a vehicle driven by defendant Berlin W. Wells,…