Verde Valley School v. County of Yavapai

Hamman Wholesale Lumber and Supply Company, Inc., brought suit in the Superior Court of Maricopa County against Pacific Indemnity Company, for declaratory judgment that its insurance policy covered one of its leased trucks which had been involved in an accident in California. The insurance company denied liability on the basis of a rider in the policy, known as the "standard hired automobile clause." The trial court held the policy covered the accident and that the exclusionary clause did not apply. The clause relied on reads as follows: