Admiral Ins. Co. v. Superior Court

Summary

Admiral Insurance Company (AIC) issued a commercial liability insurance policy via a form designed for medical professionals (Policy) to Perfect Match, Inc. (PMI). PMI, which was not a health care provider, matched surrogates and egg donors with families. Prior to signing the Policy, PMI was notified a family intended to file a complaint against PMI for, inter alia, negligence and lack of informed consent. In the Policy questionnaire, PMI answered "no" as to whether PMI knew of any circumstances which could result in a malpractice suit. Under the Policy, AIC agreed to pay for PMI's obligations regarding damanges claims made during the Policy period. PMI was sued. AIC refused to defend or indemnify it, asserting PMI made a material misrepresentation. PMI then sued AIC, arguing the Policy was inappropriate for its business. The trial court denied AIC's motion for summary judgement.

Petition granted. Despite the fact the Policy was designed for health care facilities, the Policy itself stated there was no coverage for claims arising from professional incidents if, prior to the Policy, the insured knew or could have foreseen there might be a claim. Here, even though PMI was not a health care provider, coverage was precluded because of the plain meaning of the "prior notice" provision. The superior court erred in failing to grant summary judgment for AIC.

— David Mendenhall