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FEDERAL INSURANCE COMPANY, appellant, v. ELRAC, INC., respondent.

DECISION ORDER

ORDERED that the judgment is affirmed, with costs.

The plaintiff's insured (hereinafter the lessee) entered into a rental agreement with the defendant lessor which provided that the lessee would indemnify the lessor for all claims arising out of the use of a rental vehicle. In this action, the plaintiff sought a judgment declaring that, despite the existence of the indemnification clauses of the rental agreement, the defendant was required to provide a defense and primary insurance coverage to the lessee in an action which was brought against the lessee to recover damages for negligence arising from a motor vehicle accident which occurred while the lessee operated the rental vehicle.

Under the rental agreement, the defendant is not obligated to provide a defense or primary insurance coverage to the lessee. This court has previously found the same rental agreement to be valid and has enforced the contractual indemnification provisions contained therein ( see, ELRAC, Inc. v. Beckford, 250 A.D.2d 725; ELRAC, Inc. v. Rudel, 233 A.D.2d 417).

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FEDERAL INSURANCE COMPANY v. ELRAC, INC
(Jun 1, 1999)