Maryland Indemnity Insurance v. Kornke

We are here confronted with a “clear-cut set of facts” 1 requiring a decision as to whether the coverage afforded by the omnibus clause of an automobile liability insurance policy extends to the “second permittee” — the driver of the insured vehicle as distinguished from the borrower or “first permittee” — and under circumstances where the insured owner restricted the operation of his car to the first permittee but the latter was a passenger at the time of the accident.

The issue was presented to the trial court (Jenifer, J.) upon a stipulation of facts and the deposition of the first…