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American Access Casualty Company v. Cincinnati Insurance Company

Citation: Not availableDocket: 29A02-1712-CT-2792

Court: Indiana Court of Appeals; May 16, 2018; Indiana; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

In the case between American Access Casualty Company and Cincinnati Insurance Company, the central issue was whether a business use exclusion in American Access's insurance policy precluded coverage. The case stemmed from an accident involving a vehicle insured by American Access, driven by Jairiel Berfect, a part-time home health aide, while traveling between patient appointments. Cincinnati Insurance sought a declaratory judgment, asserting that American Access had a duty to defend Advantage Home, Berfect's employer. The trial court granted summary judgment for Cincinnati Insurance, ruling that the policy provided primary coverage for Berfect and Advantage Home and that American Access was required to defend Advantage Home. American Access's motion for summary judgment was denied, as the court found the business use exclusion ambiguous and not applicable since Berfect was not engaged in delivery at the time of the accident. On appeal, the court affirmed the trial court's decision, emphasizing the importance of clear and specific policy language and the appellant's duty to present a complete appellate record. The ruling maintained that Cincinnati Insurance retained coverage under the American Access policy.

Legal Issues Addressed

Ambiguity in Insurance Contracts

Application: The court concluded that the business use exclusion was ambiguous, and therefore, it could not be used to deny coverage.

Reasoning: Legal precedent requires that insurance exclusions must be clear and specific to be enforceable; ambiguity in the policy leads to the conclusion that coverage cannot be denied.

Burden of Proof on Appeal

Application: American Access failed to provide a sufficient record on appeal to demonstrate that the trial court's ruling was erroneous.

Reasoning: The court emphasizes that it is the appellant's responsibility to present a sufficient record for an intelligent review of the issues presented.

Duty to Defend Under Insurance Policies

Application: American Access was found to have a duty to defend Advantage Home against claims because Berfect was not engaged in delivery activities at the accident time.

Reasoning: The trial court granted Cincinnati Insurance's motion for summary judgment, ruling that: 1) the policy issued to Stewart provided primary coverage for Berfect and Advantage Home; 2) both Berfect and Advantage Home were insureds under the policy issued to Berfect.

Interpretation of Insurance Policy Exclusions

Application: The court determined that the business use exclusion in American Access's policy did not apply because the exclusion was ambiguous and only related to specific delivery activities.

Reasoning: The court emphasized that the exclusion only applies when the vehicle is used for specific delivery activities, which Berfect was not performing.