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In operation of the contract is valid, the court first noted that under California law" every driver and owner of a motor vehicle shall be the financial responsibility law, by ensuring that they pay the legal minimum amounts to a third party injured in an accident. 26 The court noted that since the next two Hertz, and the tenant has with the applicable state statutes, 27 it was necessary to determine which would be in light of the fact that the tenant is not additional insurance from Hertz.28

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Mercury argued29 that California Insurance Code Section 11580.9 (d), the primary liability of the owner of a rental vehicle.30 The court rejected the argument of Mercury. He noted that in view of the fact there was no applicable California statutes, that a primacy of either a car or tenant of the undertaking of the insurance, it was necessary to examine the interplay between the lease and the tenant's policy of insurance. 31 In this test, the Court noted that since the tenant's personal auto insurance coverage clearly for the accident and the Hertz "agreement repeatedly stressed that it is not the Hertz... [The tenant] with any liability protection ' "32 The tenants of the policy was for the liberation of the primary Hertz liability.33

Also in the Enterprise Rent-A-Car Co. v. Workman's Auto Insurance Co., 34 California Court of Appeals was again with a factual and legal situation is comparable to Mercury. If the dispute in the company was "the priority of the motor vehicle liability insurance coverage, such as between an insured short-owner landlord and tenant of the insured driver." "35 In resolving this issue, the Court explicitly stated that where the car company with California's Insurance Code as a self-insurer, 36 and the lease specifically on the insurance to a renter or the driver, was adequately protected by their own insurers, 37 of the operator's insurer, the primary coverage for any subsequent accident.38

In support of its holding, the court distinguished a prior decision of the Court of Appeals in Grand Rent A Car Corp. v. 20th Century Insurance Co.39 He did this because, in the Grand, a detailed description and assessment of each car was involved in the rental car company the certificate of insurance. In contrast, the car is at issue in this company was not yet evaluated in the certificate of insurance, that the court to participate in the Grand inapplicable.

As a result, the court in the company's policy, in the arguments similar to what was Mercury, ruled that if no statute which would be primary coverage, the language of the lease in the fall of the cover must be controlling. Since the lease in question clearly excluded coverage of the primary landlord, the "driver's car is the primary and the hiring of financial responsibility is secondary. "" 41 2. Missouri

In Irvin v. Rhodes, 42 Missouri Court of Appeals was asked to compete in the abstract submitted verdict Filed by Budget Rent A Car and State Farm Mutual Automobile Insurance Company.43 budget rented one of their cars to a driver who negligently caused damage to a Third. He argued that it was not required to defend and indemnify the Tenant or its insurance for the damages resulting from the accident.44In support their thesis, budget offered evidence for a secondary liability provision in the lease specifically to reporting to the tenant, if reporting by the tenant's personal liability insurance and that the cover meets the minimum requirements of state statute.45