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Thursday, January 26, 2006
Ind. Decisions - Court of Appeals reverses malpractice insurance ruling
In Indiana Insurance Guaranty Association v. Bedford Regional Medical Center, the issue was whether IIGA is obligated under the Indiana Insurance Guaranty Act to pay a claim for the lost wages of a deceased claimant. Judge Crone writes:
The Indiana Insurance Guaranty Association (“IIGA”) appeals the trial court’s entry of summary judgment in favor of Bedford Regional Medical Center (“BRMC”). We reverse. * * *In sum, we conclude that Section 7(a)(i)(1) of the Act is ambiguous and, therefore, requires construction. The legislative intent, as stated in the Act, is to avoid excessive financial loss to claimants or policyholders because of the insolvency of an insurer. We further conclude that the legislature intended to provide less protection to claimants under the Act than was otherwise provided by the Model Act. Thus, the legislature intended for claimants and policyholders to bear part of the risk of loss. Section 7(a)(i)(1) of the Act limits coverage for bodily injury or death to amounts actually lost. Given the common and ordinary meaning of “actual” and the legislative intent behind the Act, we hold that IIGA is not obligated under the Indiana Insurance Guaranty Act to pay a claim for the lost wages of a deceased claimant.
Posted by Marcia Oddi on January 26, 2006 11:02 AM
Posted to Ind. App.Ct. Decisions