Personal Auto Exclusion A.3 and Multiple Insureds

We have a claim in which the policyholder works for an auto dealership. He had a demo vehicle at his home and was going to be driving it into work the next morning.

His wife was driving their own covered vehicle and was backing out of the garage. She did not see the dealership vehicle parked in the driveway and struck the front end of the dealership vehicle, causing damage.

Would exclusion A.3 apply in this situation?

A. We do not provide Liability Coverage for any “insured”:

3. For” property damage” to property:

a. Rented to;

b. Used by; or

c. In the care of;

that “insured”.

Pennsylvania Subscriber

Exclusion A.3 should not apply here. It is meant to apply only to the insured who damages property used by, in the care of, etc., that same insured.

Here, even if the wife is also an insured on the policy, she is a separate insured, and she should be treated as such under the terms of the PAP when it comes to both coverage and exclusions.

This premium content is locked for FC&S Coverage Interpretation Subscribers

Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis