Beane v. Maine Insurance Guaranty Association

Summary

The Maine Supreme Judicial Court considered whether plaintiffs pursuing a medical malpractice claim against an insolvent insurer were required to exhaust the full limits of a solvent co-defendant's insurance coverage under the Maine Insurance Guaranty Association Act. The court held that the exhaustion provision applies to claims against an insurer under an insurance policy and does not apply to third-party claims by persons who are not parties to the insurance contract. The court vacated the Superior Court's judgment granting summary judgment to the Maine Insurance Guaranty Association.

Holdings

1. Section 4443(1) does not apply to claims by nonparties to the insurance contract, including the Beanes' third-party claim against the solvent insurer before judgment against the insured.
2. The court did not decide whether § 4443(1) applies to post-judgment claims against an insured's insurer under Maine's reach-and-apply statute, 24-A M.R.S. § 2904.

Questions Presented

1. Whether 24-A M.R.S. § 4443(1) requires third-party claimants who are not parties to the solvent insurance contract to exhaust the full limits of that policy before seeking payment from MIGA.
2. Whether the Beanes had a claim against St. Paul under an insurance policy within the meaning of § 4443(1) when they settled before obtaining a judgment against the insured physician.

Disposition

vacated