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Clarendon National Ins. Co. v. State Farm Ins. Co.

Policies issued by insurers of rental car and its driver both provided primary coverage.

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Judge Singh

CLARENDON NATIONAL INSURANCE COMPANY v. STATE FARM INSURANCE COMPANY — This action has its genesis in a car accident in which one driver, Richard Ferraro, was covered both by his own automobile insurance and by the insurance of the car rental from which he had rented the car in which he had the accident. The driver of the second vehicle, Susan Walther brought a personal injury action against Ferraro. The law suit arising from the accident was settled by plaintiff Clarendon National Insurance Company (“Clarendon”) for $27,500 in April, 1998. The dispute here is between the two insurance companies, Clarendon, the insurer of the rental car and defendant State Farm Insurance Company (“State Farm”), the insurer of Ferraro. Clarendon seeks to compel State Farm to pay its share of the settlement based on the State Farm policy which also provided coverage to Ferraro.

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