STATE FARM FIRE AND CASUALTY INS. CO. v. FIRST NAT. BANK OF MADISON CTY.

No. 91-2640.

969 F.2d 521 (1992)

STATE FARM FIRE AND CASUALTY INSURANCE COMPANY, Plaintiff-Appellee, v. FIRST NATIONAL BANK OF MADISON COUNTY, as Guardian of the Estate of Stacy L. Murdock, and James Murdock, Defendants-Appellants.

United States Court of Appeals, Seventh Circuit.

Decided July 30, 1992.

Rehearing and Rehearing Denied September 23, 1992.


Attorney(s) appearing for the Case

Patricia McCrory (argued), Michael V. Gooch, John S. Beeman, Harrison & Moberly, Indianapolis, Ind., for plaintiff-appellee.

Max Howard, Anderson, Ind., Thomas J. Young, William N. Riley (argued), Young & Riley, Indianapolis, Ind., for defendants-appellants.

Before RIPPLE and MANION, Circuit Judges, and WILL, Senior District Judge.


Rehearing and Rehearing En Banc Denied September 23, 1992.

MANION, Circuit Judge.

In 1981, Lawrence Bayer purchased a Personal Liability Umbrella Policy from State Farm Fire and Casualty Company. The original policy was for one year but the policy contained a provision automatically renewing the policy for each succeeding year.

The policy contained several exclusions, including a "business operations" exclusion. That exclusion provided:

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