Progressive Premier Insurance Company of Illinois v. Newell, et al., Case No. CV10-1244KA

Mar 30, 2012

OUTCOME: The Court found that the delivery exclusion, which barred coverage for delivery of persons or property "for a fee or compensation," was unclear and ambiguous and that Progressive owed primary coverage to its insured and the pizzeria for the accident.

This was a declaratory judgment action pending before the Superior Court of Chatham County Georgia, Judge Michael Karpf presiding. Progressive brought an action against its insured, a Pizza Parlor ins ... ured by the American Insurance Company and the American Insurance Company seeking a delaration that it was not required to provide coverage under its personal auto policy by operation of a an exclusion which barred coverage for delivery of persons or property for "a fee or compensation." We argued that, consistent with Georgia law, the exclusion was unclear and ambiguous and therefore, the Progressive insured and the pizzeria were entitled to primary coverage under the Progressive Personal Auto Policy.