Separate Arkansas HO coverage question for adjusters/coverage attorneys:
Setting aside the pure motor vehicle exclusion issue for a moment:
If a parent knowingly provides or permits a 12–13 year old minor to operate a high-powered throttle electric dirt bike / no-pedal off-road motorized bike on a public residential street, and that minor collides with an occupied automobile causing bodily injury claims, do Arkansas homeowners carriers analyze negligent supervision / negligent entrustment as an independent covered negligence allegation against the parent?
In other words, even if the carrier asserts the injury arose from use of a motorized vehicle, do Arkansas HO carriers still evaluate:
- negligent supervision of a minor,
- negligent entrustment of dangerous motorized equipment,
- failure to prevent unlawful or unsafe street operation,
as separate theories potentially creating duty to defend or settlement exposure against the parent?
Curious whether Arkansas claims handlers usually deny outright under motor vehicle exclusion, or whether this kind of parental negligence allegation still creates reservation-of-rights / litigation analysis.