Insurance – Coverage – Family Member Exclusion
In 'Day v. Allstate Indemnity Company' (2008AP2929) the
plaintiff Wendy Day sued Holly Day, her ex-husband's current
wife, who was an insured under a homeowners' insurance policy
with the defendant, for wrongful death and survivorship claims
alleging that Holly's negligent supervision caused the
plaintiff's daughter's death. The defendant asserted that the
family member exclusion clause in the homeowners' liability
policy precluded coverage for the plaintiff's wrongful death and
survivorship claims. The family member exclusion limited
coverage by excluding losses for a "bodily injury to an insured
person whenever any benefit of this coverage would accrue
directly or indirectly to an insured person." Under the policy,
the plaintiff's daughter, the plaintiff's ex-husband and his
wife Holly Day were considered "insured persons," while the
plaintiff herself was not. The defendant moved for summary
judgment on the coverage issue, and the circuit court denied the
motion. The defendant appealed.
The court of appeals reversed, holding that coverage did not
exist because the plaintiff and her ex-husband were the
daughter's heirs and therefore any amount recovered would belong
to them, and that such a recovery is precluded under the
policy's family member exclusion clause. The question that is
critical to the operation of the family exclusion clause is
whether an insured person will benefit from coverage.
Furthermore, the identity of the person pursuing the claim
against the insured is irrelevant to the determination of
whether an exclusion precluding coverage for injuries to
relatives or other household members applies in particular
circumstances.
