Transport Insurance Co. v. Employers Casualty Co.

CLAUDE WILLIAMS, Chief Justice.

Employers Casualty Company issued its liability policy to Prior Products, Inc., covering its vehicles, with liability limits of $100,000/$300,000. Transport Insurance Company issued its liability policy to Hun-saker Truck Lease, Inc., with liability limits of $300,000/$500,000. Both policies contained identical “Other Insurance” clauses providing for a pro rata division of losses.

By written agreement, Hunsaker leased to Prior Products a truck. The leased truck, while being driven by a Prior Products employee, was involved in a collision with an automobile in…