Opinion ID: 1424217
Heading Depth: 3
Heading Rank: 2

Heading: The Insurance.

Text: On May 4, 1982, Bruce Swanson had obtained an Owners, Landlords & Tenants liability insurance policy (OLT-Form 105035) covering only his trailer park. OLT-Form 105035 insured Swanson for bodily injury and property damage liability caused by an occurrence and arising out of the ownership, maintenance or use of the insured premises and all operations necessary or incidental thereto. This form excluded coverage for bodily injury arising out of the ownership, maintenance, operation, use, loading or unloading of (1) any automobile ... owned or operated by ... any insured. The form also excluded coverage for bodily injury to any employee of the insured arising out of and in the course of his employment by the insured. On May 15, 1982, Swanson amended his policy by adding his produce stand business to his trailer park policy. The general amendment endorsement deleted OLT-Form 105035 (the Owners, Landlords & Tenants coverage and exclusions), and added Form 105040, thereby making the policy a Comprehensive General Liability (CGL) policy. The general amendment endorsement states plainly on its face that ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED. The newly added CGL-Form 105040 is a three-page form. CGL-Form 105040 provides for coverage and exclusions. On page one, under the description of hazards covered, the form reads: PREMISES-OPERATIONS Included [typewritten]. On page two, under COVERAGE, the form provides that Fireman's Fund will provide coverage for bodily injury caused by an occurrence. The CGL-Form does not contain the arising out of the ownership, maintenance or use of the insured premises and all operations necessary or incidental thereto provisions found in the deleted Owners, Landlords & Tenants Form 105035. Finally, on page two of the newly added endorsement, the CGL-Form excludes coverage for bodily injury arising out of the ownership, maintenance, use, loading or unloading of (1) any automobile owned or operated by the insured, or for bodily injury to any employee of the insured arising out of and in the course of his employment by the insured. Swanson also had an automobile policy on his pickup truck with Allstate. He had neither liability insurance nor workers compensation insurance for the grocery store. Following the accident, Swanson notified and demanded coverage from both Fireman's Fund and Allstate. Allstate ultimately paid the policy limits under its automobile policy. Fireman's Fund denied coverage pursuant to an exclusion for bodily injury arising out of the use, loading or unloading of an automobile, and an exclusion for bodily injury to an employee of the insured arising out of the course of his employment. Faced with Fireman's Fund's continued denial of coverage, Swanson ultimately confessed judgment and assigned his interest in the policy to Hale, who agreed not to execute on a judgment against Swanson's assets. Hale then commenced his direct action against Fireman's Fund pursuant to Swanson's confession of judgment and assignment of rights.