Hackethal

Introduction

This case involves a question of first impression: Does an insurance policy which promises to reimburse an insured physician for his expense and loss of earned income “for each day the insured is required to attend the trial of a civil suit for damages against the insured alleged to have been caused by malpractice” provide such coverage for a hearing before the Board of Medical Quality Assurance (BMQA) which the insured is required to attend? We hold that it does not.

Plaintiff, appellant and cross-respondent Dr. Clemens A. Hackethal (Dr. Hackethal) brought an action against defendants, respondents and cross-appellants National Casualty Company (National), an insurance company, and Frank B. Hall & Company (Hall), formerly Nettleship Company (Nettle-ship), insurance brokers, for deceit, and against National only, for bad faith refusal to pay benefits due under an income reimbursement insurance policy.

The jury rendered a verdict in favor of Dr. Hackethal and against National in the amounts of $5,000 for insurance benefits; $25,000 for emotional distress; and $100,000 for punitive damages; and rendered a verdict in favor of Dr. Hackethal and against Hall in…