AMCO Insurance Co. v. Employers Mutual Casualty Co.

Summary

The South Dakota Supreme Court held that a commercial general liability policy exclusion for bodily injury or property damage that commenced before the policy’s inception date did not violate public policy, even when the damage was unknown to the insured. The court affirmed summary judgment for Employers Mutual Casualty Company and rejected AMCO Insurance Company’s claim for contribution to defense and indemnity costs.

Holdings

1. A commercial general liability policy exclusion for property damage that commenced before the policy's inception date, including damage that was unknown to the insured, does not violate South Dakota public policy where no statute, constitutional provision, administrative action, judicial decision, or identifiable public moral forbids the exclusion.
2. EMC was entitled to summary judgment because the undisputed facts placed the property damage outside the coverage provided by EMC's unambiguous policy exclusion.

Questions Presented

1. Whether an unambiguous commercial general liability policy exclusion for unknown continuous or progressive property damage that commenced before the policy's inception date violates South Dakota public policy.
2. Whether EMC was entitled to summary judgment on AMCO's claims for contribution toward defense and indemnity costs.

Disposition

affirmed