State Farm Mutual Automobile Insurance v. Universal Underwriters Group

In this appeal, we consider whether a car dealer’s garage insurance policy covers the liability of a separately insured customer who is involved in an accident while test-driving one of the dealer’s vehicles. In 1994, Rodney Luckhart took a test-drive in a Jeep Cherokee owned by defendant Joyce Pontiac GMC, Jeep-Eagle and Toyota (Joyce Pontiac). During the test-drive, Luck-hart negligently collided with a vehicle owned by Vivian Carter and operated by Raun Calinee, both of whom suffered personal injuries as a result of the accident. Luckhart had automobile liability coverage under a policy…