Insurer Defends Malicious Prosecution Claim under Homeowner’s Policy
A civil suit was filed against the insured for malicious prosecution, alleging she knowingly made false verbal and written statements to the police. She was insured under a homeowner’s policy which provided coverage for damages caused by “personal injury” resulting from an “occurrence.” The policy definition of “personal injury” included malicious prosecution, and the definition of “occurrence” was an accident resulting in an injury. The insurer challenged coverage on the grounds that the insured’s acts were intentional and fell under the intentional acts exclusion.
The court held that the ambiguity caused by the contradictory terms of the policy must be interpreted in favor of the insured, and therefore there was coverage for malicious prosecution under the policy. The court further held that insurance coverage for malicious prosecution does not violate public policy.
Illinois Farmers Ins. Co. v. Keyser, 2011 WL 3765412, –N.E.2d — (Ill.App. 3 Dist., 2011).
