Insurer Can Challenge Day Care Abuse Coverage: 8th Circ.

Law360 (August 12, 2019, 6:12 PM EDT) -- The Eighth Circuit on Monday revived excess insurer RSUI Indemnity Co.’s bid to avoid having to pay for part of a $6 million jury verdict against a Minnesota day care facility where one child assaulted another.

A three-judge panel of the appellate court unanimously reversed U.S. District Judge Paul A. Magnuson’s 2017 decision, which rejected RSUI’s argument that an exclusion in its policy for sexual abuse claims freed it of any obligation to cover a portion of the multimillion-dollar judgment against policyholder New Horizon Kids Quest Inc.

Judge Magnuson had said nothing in the record of the underlying case would support...

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