In Terrell v. State Farm General In. Co., 40 Cal. App.
5th, 497 (Sept. 26, 2019), the California First District Court of
Appeal affirmed the trial court's entry of summary judgment in
favor of State Farm General Insurance Company ("State
Farm") in connection with a dispute related to coverage of a
personal injury lawsuit filed against State Farm's insureds
Paul Terrell and Rica Tseng ("the insureds"). State Farm
based it denial of coverage on a "business pursuits"
exclusion in the insureds' homeowners insurance policy.
The parties' dispute arose out of a personal injury lawsuit
filed against the insureds by a tenant renting a home owned by the
insureds. Initially, the insureds lived in the home from 2000 to
2003. Thereafter, they rented the home to various tenants from 2003
to 2004. During this time period, the insureds purchased a rental
dwelling policy from State Farm to cover the exposure posed by
renting the home. Subsequently, the insureds discussed moving
