Your insured's auto is at the Cadillac dealer's shop for servicing and he is given a loaner car which he totals to the tune of $37,000 in an at-fault accident. His PAP insurer says his physical damage coverage is excess on nonowned autos though they might be willing to contribute on a pro rata basis since this is a temporary substitute. The dealer's policy pays the damages, then subrogates against your insured by filing a lawsuit. The PAP insurer denies the liability claim under a reservation of rights, citing the exclusion for care, custody, or control. Who's right?
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