Travelers Indemnity. Co. v. Royal Indem. Co

In Travelers Indemnity. Co. v. Royal Indem. Co. (1969) 275 Cal.App.2d 554, Travelers issued to Feigin an automobile policy that excluded coverage to an "owned automobile while used in the automobile business;" the latter term was defined in terms of the statute. The accident occurred while the vehicle was being road tested by the employee of the dealer to whom Feigin had taken it for repairs. In rejecting Travelers' contention that the automobile was being used "in the automobile business" within the terms of the policy exclusion, the court noted at page 560 that such an exclusion for the particular transaction could not be logically deduced from the language of the policy and also was not sufficiently clear and unambiguous as required by the statute.