Most liability insurance policies include a provision whereby the insured is not insured for intentional acts – called the “intentional acts” or “criminal acts” exclusion. Typically, such provisions only exclude insurance coverage where the insured policyholder acted intentionally (rather than negligently) and intended the conduct to cause injury.
In Wilshire Ins. Co. v. S.A., the Arizona Court of Appeals was faced with an insurance coverage dispute where the insured policyholder had sexually assaulted a 15 year old while locked in the company’s basement. The insured pled guilty to sexual assault, among other things.
The insurance policy provided that there was no coverage for conduct “arising out of a criminal act committed by or at the direction of any insured.” Based on that clause and the public policy that insurance should not protect those who intentionally cause injury, the Court affirmed the trial court’s determination that there was no coverage for the assault. The Court noted that this was not a case where the insured acted intentionally, but unintentionally caused injury.
United States District Court Judge John W. Sedwick found in favor of the firm’s client against Travelers Property Casualty Insurance Company for failing to honor an assignment of insurance proceeds. The firm represented an insurance adjuster who had received a partial assignment of proceeds from his client, the insured. The insurance company had refused to honor the assignment. Read the Decision
John Impellizzeri (the firm’s client) was the Plaintiff and Kenneth Sloniger was the Defendant in a lawsuit brought by Impellizzeri for Sloniger’s misrepresentations and errors in selling Impellizzeri certain life insurance. Sloniger’s insurance company defended him in the claims, but reserved rights to deny coverage. Because of the reservation of rights, Sloniger was partially released from his duty to cooperate with the insurer and entered a stipulated judgment in favor of Impellizzeri.
Impellizzeri then attempted to enforce the stipulated judgment against Sloniger’s insurance company. Judge Anna Baca found in favor of Impellizzeri and allowed him to enforce the judgment against American Automobile Insurance Company, but only to the extent that the stipulated judgment represented a reasonable settlement of the claims against Sloniger. View the Superior Court Ruling.
