Opinion ID: 900807
Heading Depth: 1
Heading Rank: 9

Heading: The Suit Against Farmers Insurance For Coverage Under the Omnibus Clause.

Text: [¶ 19.] At the time of the accident, Juffer carried a liability insurance policy through Farmers on the Taurus. The policy defined an insured person as: 1) You or any family member; 2) Any person using your insured car. The policy excluded from coverage any person who used the vehicle without having sufficient reason to believe that the use was with the permission of the owner. [¶ 20.] The omnibus insurance clause in South Dakota is codified at SDCL 32-35-70 and states in pertinent part: An owner's policy of liability insurance referred to in § 32-35-68 shall insure the person named therein and any other person as insured, using any insured vehicle or vehicles within the express or implied permission of the named insured, against loss from liability imposed by law for damages arising out of the ownership, maintenance or use of the vehicle or vehicles within the United States of America. [¶ 21.] The operation of an omnibus clause creates liability insurance in favor of persons other than the named insured to the same degree as the insured. To trigger coverage under this policy, Estate must establish that Mike was operating Juffer's vehicle with either expressed or implied permission. Estate specifically contends that there is a legitimate inference that Mike had permission from Juffer to use the vehicle based upon their close relationship and past conduct.