Opinion ID: 774243
Heading Depth: 4
Heading Rank: 3

Heading: The RRG Policy

Text: 22 The RRG Policy differs from both the Samaritan and MICA policies in that Dr. Romberger was not its purchaser. Samaritan Health Systems, his insurer, purchased it as umbrella coverage for multiple healthcare institutions and contract physicians (such as Dr. Romberger) that are insured, in the first instance, by Samaritan. The RRG policy offered four layers of coverage with a total policy limit of $24 million. Samaritan paid premiums to RRG totaling $7,534,977. 23 The first layer of RRG coverage was entitled excess insurance and provided a policy limit of $1 million for each occurrence, but with no aggregate limit. It became effective October 1, 1986, and was written specifically as excess of the underlying Samaritan Policy. While this layer of coverage did not include a designated, separate other insurance clause, it did define loss so as to provide that the insurer had no liability until deductions for all other recoveries, salvages, or other insurance were made. 24 The second layer of RRG coverage, also effective October 1, 1986, was entitled Hospital Umbrella Liability Policy. It provided $10 million in insurance excess of Underlying. Among the Underlying was the Samaritan Policy, the first layer of RRG's coverage, and several other insurance policies listed in the schedule of underlying coverage. The MICA policy, which Dr. Romberger purchased, was not listed. 25 Although this second layer of coverage stated that it was excess of the listed underlying policies, it more narrowly defined its coverage. Specifically, this layer of RRG coverage purported to apply only to the ultimate net loss in excess of the applicable underlying limit. Applicable underlying limit was, in turn, defined as the total of the limits of the underlying insurance . . . and the limits of any other valid and collectible insurance . . . . 26 In addition, this second layer of coverage included an other insurance clause, which reads: 8. OTHER INSURANCE 27 a. The insurance afforded by this policy shall be excess insurance over any other valid and collectible insurance available to the insured, whether or not described in the Schedule of Underlying Insurance . . . and applicable to any part of ultimate net loss, whether such other insurance is stated to be primary, contributing, excess or contingent. 28 The third layer of RRG coverage became effective October 1, 1987. It provided $5 million in coverage for losses in excess of $10 million. This policy is entitled Excess Umbrella Liability. By its express terms, this insurance did not provide coverage until $10 million in underlying insurance had been exhausted. 29 The fourth and final layer of RRG coverage became effective October 1, 1988. It provided $8 million in coverage for losses in excess of $15 million. However, this final layer of RRG coverage did not become effective until after Dr. Romberger's care of Christina Beery ended. The district court held that this layer of coverage was not applicable to the Beery judgment. MICA did not appeal this ruling.