Opinion ID: 2049700
Heading Depth: 1
Heading Rank: 2

Heading: the liability of aetna under its scope policy

Text: We are in complete agreement with the trial justice's interpretation of the Aetna scope or umbrella policy, notably section 6.11 thereof. [1] The trial justice aptly set forth this interpretation as follows: Read in conjunction with Section 3.1(e), Section 6.11 establishes that the Aetna policy will continue in effect on a 22 foot watercraft, but Aetna's liability will be limited to those amounts in excess of the underlying limits stated in Section 2.5. In effect, the insured has the right to be a self-insurer of the underlying amount for watercraft less than 26 feet in length. On the face of the policy, Aetna insured the risk of loss to watercraft for the amount in excess of $300,000. Aetna undertook this liability in exchange for the consideration of the policy premiums and the amount of consideration Aetna received was calculated based on the risk that Aetna was undertaking. An examination of the entire policy convinces us that the trial justice was completely correct in this interpretation and that Aetna's liability for loss or injury in connection with this twenty-two-foot boat would not accrue until the loss exceeded the underlying sum of $300,000. In light of our determination of agency, it is unnecessary for us to consider at length Atlantic's arguments on this issue.