Petrusek v. Farmers Ins. Co. of Ariz
In Petrusek v. Farmers Ins. Co. of Ariz., 193 Ariz. 552, 975 P.2d 142 (App. 1998), an employee was injured while driving during the course of business. Id.2.
Her employer carried a BAP as well as a CGL policy. Id.3.
The employee sought to recover from the CGL policy, which provided auto coverage only as excess insurance. Id.3-5, 12.
She argued that because her personal insurance coverage had lapsed, 7 her employer's CGL policy became primary insurance. Id.13.
The Court rejected this argument, noting that the legislative history of 20-259.01(L) "indicates that the legislature intended to overrule Gilmore's holding that required insurers to offer UIM coverage in connection with general commercial liability policies providing automobile liability insurance." Id.17.
The Court reasoned that the plain language of the statute shows an intent to eliminate the requirement that insurers offer underinsured motorist coverage when selling automobile liability coverage provided 'in connection with' a broad range of 'non-primary' type policies, including but not limited to commercial general liability, excess, and umbrella policies.
Thus, the exception applies as long as the policy is not intended to be the first or only source of insurance coverage. Id.15.