Court Opinion

ID: 9623904
Source: CourtListenerOpinion
Date Created: 2023-08-22 06:45:45.242723+00
Date Added: 2024-06-11T18:05:36.406864
License: Public Domain

MOLLOY, Judge
(specially concurring).
Before the decision of Reserve Life Insurance Company v. Marr, 254 F.2d 289 (9th Cir.1958), cert. denied 358 U.S. 839, 79 S.Ct. 63, 3 L.Ed.2d 74 (1958), this was a reasonably clear insurance policy. Its coverage segregated out of the many “hospitals” in the country those having certain designated facilities and services, most of which the subject hospital does not have. Any rest home can “have” these facilities through a contractual arrangement, but most persons, giving this language its natural meaning, would not conceive that siich contracts would determine whether or not a particular institution met the express requirements of this policy.
However, once the Reserve Life Insurance v. Marr decision was rendered, fundamental fairness dictates that this plaintiff should prevail. That decision was rendered upon the very same policy construed here, and as to the very same defendant. Though this policy was issued before that opinion, the policy is for monthly, quarterly, semi-annual or annual terms (the record is unclear which).
In boldface on the front of the policy is this language:
“This policy is renewable at the option of the Company only.”
Other verbiage1 in the policy makes it clear that the company can refuse, without cause, to accept any renewal premium and that such refusal constitutes a termination of the policy.
After the Marr decision, it would seem only fair that if Reserve Life did not want to give coverage under this policy for expenses incurred at “hospitals” which “had” the specified facilities through contractual arrangement, it should have issued an endorsement to its policy so stating, or it should have failed to accept the premiums tendered on this policy. Having done neither, it should pay this “hospital” bill.

. Paragraph 4 of “Additional Provisions” reads in part:
“ * * * or if any renewal premium be not accepted by the Company, this policy and all benefits hereunder shall terminate without further notice. * * ”