Brandon S. v. State Ex Rel. Foster Family Home & Small Family Home Insurance Fund

INTRODUCTION

In response to the inability of foster parents to obtain insurance for claims arising from foster parent activities, the Legislature created the Foster Family Home and Small Family Home Insurance Fund (the Fund). (Health & Saf. Code, § 1527 et seq.) The Fund has the statutory obligation, subject to procedural and financial limitations, to pay claims filed by foster children against foster parents for occurrences arising from the foster care relationship. However, the Legislature limited the Fund’s liability by enacting section 1527.3 to exclude coverage for eight classes of claims. At issue here is the exclusion of section 1527.3, subdivision (a), under which the Fund is not liable for “[a]ny loss arising out of a dishonest, fraudulent, criminal, or intentional act.” (Italics added.)

Appellant Brandon S., a foster child, was molested by the stepson of his licensed foster mother, Monique M. Through his guardian ad litem, he filed a claim with the Fund, alleging that Monique M.’s negligent supervision resulted in the molestation. He sought damages for emotional and physical injuries caused by the molestation. Based on the exclusion for “[a]ny loss arising out…