Insurance Co. of North America v. Electronic Purification Co. (1967) 67 Cal.2d 679, a company that sold, leased, and installed water purification machines purchased a "Comprehensive Liability Insurance" policy which began with an agreement by the insurer to provide general coverage against all bodily injury claims. (Id. at p. 683, italics omitted.)
Under subheadings entitled "Exclusions" and "Conditions," the policy then set forth situations in which this general coverage did not apply.
The listed exclusions and conditions included an exclusion for "Products hazard," which the policy defined as follows:
" 'The term "products hazard" means
(1) goods or products manufactured, sold, handled or distributed by the named insured . . . , if the occurrence or accident takes place after possession of such goods or products has been relinquished to others by the named insured . . . and if such occurrence or accident takes place away from premises owned, rented or controlled by the named insured, . . . but such goods shall not include any vending machine or any property, . . . rented to or located for use of others but not sold;
(2) operations, if the occurrence or accident takes place after such operations have been completed or abandoned and takes place away from premises owned, rented or controlled by the named insured; provided, operations shall not be deemed incomplete because improperly or defectively performed or because further operations may be required pursuant to an agreement; provided further, the following shall not be deemed to be 'operations' within the meaning of this paragraph: (a) pick-up or delivery, except from or onto a railroad car, (b) the maintenance of vehicles owned or used by or in behalf of the insured, (c) the existence of tools, uninstalled equipment and abandoned or unused materials.' " (Electronic Purification, supra, 67 Cal.2d at p. 683, fn. 3.)