More particularly, as the owner of the vehicle Davis was driving at the time of the accident, Budget Rental paid Taylor $25,000 for a covenant not to execute against Davis personally. Peak's policy, to the extent it provides coverage to the accident, is excess insurance. See N.C. Farm Bureau Mut. Ins. Co. v. State Farm Mut. Auto. Ins. Co., 403 S.E.2d 151, 152 (S.C. Ct. App. 1991). However, the jury only awarded Taylor $615 in damages, and the state court credited Budget Rental's payment against this award.
Under South Carolina law, "as a general rule, when two policies extend coverage to the operation of a vehicle, the policy insuring the liability of the owner of a described vehicle has the first and primary obligation." North CarolinaFarm Bureau Mut. Ins. Co. v. State Farm Mut. Auto. Ins. Co., 304 S.C. 110, 112, 403 S.E.2d 151, 152 (Ct.App. 1991), cert.granted, (July 24, 1991), and appeal dismissed, 306 S.C. 263, 411 S.E.2d 425 (1991). The language of the First Southern and Unisun policies is consistent with the general rule of law. Each policy Provides: