State Farm Mutual Automobile Insurance v. Fireman's Fund Insurance

OPINION

HATHAWAY, Judge.

Can an insurance company exclude coverage to its named insured when the named insured is operating, with permission, an automobile owned by a person engaged in the automobile business? We answer that it cannot.

This case involves a question of insurance coverage for Deanne Sasselli, who was involved in an automobile accident that occurred on or about March 2, 1983, in the vicinity of Nogales, Sonora. Her insurer, the appellant State Farm Mutual Automobile Insurance Company (State Farm), filed a declaratory judgment action requesting that the trial court declare the…