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  5. 663 P.2d 953 (1983)
 

INS. CO. OF N. AM. v. ST. FARM MUT. AUTO. INS.

No. 5700.

663 P.2d 953 (1983)

INSURANCE COMPANY OF NORTH AMERICA, Appellant, v. STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, Appellee.

Supreme Court of Alaska.

May 20, 1983.

Attorney(s) appearing for the Case

Kenneth P. Jacobus, Hughes, Thorsness, Gantz, Powell & Brundin, Anchorage, for appellant.

Kenneth R. Lamb, Lamb & Bowen, Anchorage, for appellee.

Before BURKE, C.J., and RABINOWITZ, MATTHEWS and COMPTON, JJ.

OPINION

BURKE, Chief Justice.

On January 24, 1973, James Mead, the basketball coach at Talkeetna School, was returning from a basketball game with students when the van he was driving collided with a vehicle owned by the Matanuska-Susitna Borough School District [School District], Mead's employer. A number of students were passengers in Mead's van. The students were injured in the accident which was caused by Mead's negligence.

The vehicle Mead was...

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