National Indemnity Co. v. Budget Rent a Car Systems, Inc.

This case presents questions of the priority of coverage by several no-fault automobile insurance policies, a number of which contain so-called "other insurance” clauses. In August 1986, Priscilla Dunlap, a resident of California, rented an automobile from defendant Budget Rent A Car Systems, Inc. Dunlap was involved in an accident with another motorist, who later brought an action against Dunlap and Budget. The claim was settled for $400,000.

Dunlap was personally insured by Fidelity and Casualty Company of New York under her own automobile liability policy, which provided primary liability…