American Interinsurance Exchange v. Diamond

Ness, Justice:

This is a declaratory judgment action determining the respective rights and obligations of the parties under two automobile liability insurance policies.

Daniel Diamond was involved in an automobile accident while driving a car owned by Margaret Taylor. Diamond had a non-owner’s liability policy issued by American Interinsurance Exchange and Taylor was insured by Gulf Insurance Company. Both policies provided for liability coverage only; that is, neither contract contained collision coverage provisions. Taylor filed suit against Diamond alleging that his negligence was the…