Opinion ID: 2224780
Heading Depth: 1
Heading Rank: 4

Heading: Iowa Cases Involving Business Pursuit Exclusion.

Text: In upholding the district court's judgment we are not unmindful of our two recent decisions involving the business pursuit exclusion. In Moncivais v. Farm Bureau Mutual Insurance Co. we reversed the district court's denial of a summary judgment filed by the insurer and directed that judgment be entered in its favor. The evidence showed that the insured had, at times, up to twenty-five children in her care. The insured did not dispute that her child day care service, which she had operated for fifteen years, constituted a business pursuit. She relied instead on that portion of the exclusion that excepted activities ordinarily incident to non-business pursuits, which we held did not apply. 430 N.W.2d 438, 441-42 (Iowa 1988). Thus, the case is clearly distinguishable. AID (Mutual) Insurance v. Steffen presents a closer and more pertinent case. There we affirmed the district court's order granting summary judgment in favor of the insurer. The question was whether the insured's patent litigation was excluded under the business pursuit exclusion. Noting that there was no evidence on the insured's expectations and no circumstances attributable to the insurer which would foster expectations of coverage, we found the insured's reasonable expectations contention to be without merit. 423 N.W.2d 189, 192 (Iowa 1988). The question of interpretation was then one of law, and we concluded an ordinary person would not misunderstand the policy's coverage. Id. In this case, by contrast, there was evidence of the Voeltzes' reasonable expectations of coverage and of conduct on the part of the agent fostering such expectations. Consequently, interpretation of the exclusion was a fact question which the district court correctly resolved in favor of the insured.