Parents in Pennsylvania allegedly found a gun they believed their son used to kill a friend but did not hand it over to authorities.
Howard I. Rosenberg and Kimberly L. Rosenberg sought defense and indemnity coverage under the home insurance issued by Chubb Indemnity and the personal umbrella of Hudson Insurance. Both insurers denied coverage, citing policy language prohibiting coverage for intentional conduct. The parents argue that their actions should be covered because they did not intend to cause the emotional distress claimed by the mother.
A federal district court in western Pennsylvania this week sided with insurance companies, saying the parents’ actions represented behavior not covered by insurance.
The Rosenbergs are being sued by the mother of the boy who allegedly murdered her son at home and dragged him into a nearby park to hide the body. He claims that he found a handgun with a gun in it and, because it was likely to be evidence, gave it to a marriage counselor “to prevent or delay the arrest and prosecution” of his son. rather than revealing that he was from Rosenberg, said he found a handgun and turned it over to a homicide investigator. Her mother claims their actions led to a delay in the police investigation and the discovery of her son’s decomposing body, which she has filed for willful infliction of emotional distress.
The Rosenbergs argue that Chubb and Hudson should have provided coverage, even though the disposition of the appeal could render the underlying lawsuit against them moot.
Chubb stated that the factual allegations asserted against Rosenbergs did not constitute personal injury caused by the “event” as required, and therefore sought compensation under Masterpiece’s Homeowner Liability Policy. I refused. “This conclusion is because the actions you are accused of committing were intentional and not accidental or unintentional,” the insurer told Rosenberg.
The court agreed with Chubb. It leads to the inevitable conclusion that the events were not caused by Chubb’s policy,” the court ruled. The complaint alleges that the Rosenbergs discovered the handgun, learned that it was likely evidence of a crime, and transferred ownership of the gun to a marriage counselor. It’s full of factual claims.” Delay the arrest and prosecution of my son. As a result of these alleged actions and inactions, police investigations and discovery of the bodies were delayed.
All of these alleged actions or omissions indicate that Rosenberg “acted with the intent to achieve the specified goal” of preventing and/or delaying the prosecution of his son. , presents a simple example of behavior that falls outside the realm of chance,” the court concluded.
The court argued that “the concluding allegation of recklessness does not transform Rosenberg’s actions into an event or contingent incident to trigger coverage in this case.”
Chubb also argued that the policy’s “intentional act” exclusion wording would preclude coverage even though the court found that the underlying complaint claimed “occurrence.” did.
Rosenberg’s Hudson Insurance was a comprehensive personal insurance policy that provided excess coverage beyond the existing limitations and coverage of other policies, such as homeowners and auto insurance. The reasons for Hudson’s denial of the report and his analysis of Hudson’s policy by the court follow much the same path as in the Chubb case, but with subtle differences.
The Rosenbergs and the mother who sued them allege that Hudson’s legal obligations were caused by Chubb’s refusal to report, even though Chubb’s insurance policy had not expired. If the insurer, in this case Chubb, refuses to cover a claim covered by the umbrella policy, it argues that the umbrella policy must “drop down” and provide defense to Rosenberg. .
However, the court confirmed that the analysis and conclusions under Chubb’s policy on “occurrence,” “recklessness,” and public policy also apply to Hudson’s policy. Hudson’s defensive duties are only triggered by “events.”
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