Pacific Indemnity Co. v. Federated American Insurance

This case presents a question of first impression in this state.

When two companies issue insurance policies covering the same occurrence that gives rise to a possible liability and both policies describe the coverage as being excess insurance over any other valid and collectible insurance, which insurance company shall bear the loss, if any?

Wendy J. Bundt, while driving an automobile with permission of the owner, William A. Farrimond, had an accident. A passenger in the other car sued both of them.

Plaintiff-appellant, Pacific Indemnity Company (hereafter referred to as Pacific) had insured…