State, Department of Transportation & Public Facilities v. State Farm Fire & Casualty Co.

OPINION

MATTHEWS, Justice.

Adrian Sanders sued the State of Alaska for injuries suffered when he collided with a train of baggage carts on a public road at Anchorage International Airport. The carts were travelling from a warehouse on state land that had been leased and subleased. As required by the lease, the lessees obtained a liability insurance policy naming the State as an insured. The question in this case is whether the liability insurer has a duty to defend the State in the Sanders litigation. Based on the language of the policy and the nexus between the accident and the use of the…