Chandler v. Valentine

Summary

The Oklahoma Supreme Court held that an insurer may not cancel a claims-made medical malpractice policy after learning of conduct that could give rise to a claim, because such cancellation violates Okla. Stat. tit. 36, § 3625. The court vacated the Court of Civil Appeals' opinion and affirmed summary judgment for the personal representative of the deceased patient's estate. The policy therefore remained in effect when the wrongful-death action was filed.

Holdings

1. Section 3625 applies to claims-made insurance policies, not only occurrence policies.
2. For a claims-made policy, section 3625 applies when the insurer agrees to cancel the policy in a manner that cuts off a potential claim and the insurer is actually aware of the acts that may result in that claim.
3. PLICO's cancellation was void, the policy remained in effect when the wrongful-death action was filed, and summary judgment for the personal representative was proper.

Questions Presented

1. Whether Okla. Stat. tit. 36, § 3625 applies to a claims-made liability-insurance policy.
2. Whether an insurer may agree to cancel a claims-made policy after learning of acts during the policy period that may give rise to a claim, when cancellation would cut off the potential claim.
3. Whether summary judgment for the personal representative was proper in the garnishment proceeding.

Disposition

vacated