6.17 Intoxication Exclusions

• Jurisdiction: Arizona

The Arizona Supreme Court reversed the court of appeals in Philadelphia Indemnity Insurance Co. v. Barrera, ^[238] finding that the exclusion relied upon by the rental car company violated the insured's reasonable expectations. In overruling the appellate court, the Arizona Supreme Court found that rental car customers buying additional liability insurance would expect to be covered for liability imposed for negligent driving, including driving under the influence.^[239] The court rejected the intoxication...