McDaniel v. Sierra Health & Life Ins. Co., 118 Nev. 596

Summary

The Nevada Supreme Court affirmed summary judgment for Sierra Health and Life Insurance Company in a dispute over accidental death benefits. The court held that the policy's felony exclusion was unambiguous and applied to the insured's death resulting from felonious drunk driving that injured a passenger. The court adopted a broader causation approach, concluding that the death was indirectly or directly the result of the insured's felony.

Holdings

1. The felony exclusion is not ambiguous; its plain language excludes coverage for a loss that is directly or indirectly a result of the insured's commission of a felony.
2. The exclusion applies to all felonies regardless of criminal intent, and felonious drunk driving is a felony under California law that triggers the exclusion.
3. The court adopted the majority totality-of-the-circumstances approach; Dawson's death, viewed as a whole, resulted from his felonious drunk driving, so the exclusion bars recovery.

Questions Presented

1. Whether the felony exclusion in the accidental death benefit policy is ambiguous and must be construed in favor of the insured.
2. Whether the felony exclusion applies to felonious drunk driving, which is not an intentional crime.
3. Whether the felony exclusion is triggered when the insured's death was not proximately caused by his felonious drunk driving.

Disposition

affirmed