State Farm Fire & Casualty Co. v. ELIZABETH N.

This appeal’s sole issue is whether multiple instances of negligent care and supervision, which allowed several children to be repeatedly molested, constituted multiple occurrences under a State Farm Fire and Casualty Company (State Farm) insurance policy. State Farm’s policy had a liability limit of $100,000 per occurrence and stated that all bodily injury resulting from continuous or repeated exposure to the same general conditions would be deemed the result of one occurrence. The trial court held that the insured’s acts and omissions were one occurrence under the policy as to each child.

After reviewing the facts and relevant insurance policy language, we conclude that the insured’s liability to each child was one occurrence because each child’s injuries resulted from repeated exposure to substantially the same general conditions. Therefore, we affirm the judgment.

Facts

State Farm initiated this action for a declaration of its rights and obligations regarding indemnification of its insured, Lynn Lynn, for stipulated judgments entered in three underlying cases. Some of the judgments were partially satisfied. State Farm sought to determine whether it had to pay any…