Bankers Life and Casualty Company, a Corporation v. Arizona Public Service Company, a Corporation

This is an appeal from a summary judgment entered by the District Court for the District of Arizona for the plaintiff, Arizona Public Service Company (Public Service), in its suit against Bankers Life and Casualty Company (Bankers Life). Jurisdiction was based upon diversity of citizenship. 28 U.S.C. § 1332 .

The action was brought to recover on a group life insurance policy for the death of Paul Petris, who was killed when the company aircraft he was piloting crashed. Bankers Life denied liability under an aviation clause in the policy which purported to exclude from coverage all persons except passengers in any aircraft.

From the affidavits submitted by Public Service it appears without dispute that sometime before the fatal accident the policy in question had been renewed; that during the negotiations leading up to the renewal, when Public Service specifically inquired “whether linesmen inspecting power lines while being transported by helicopters could be covered by the policy, and whether the company pilot could be covered by the policy,” Bankers Life had replied “the linesmen being transported via helicopter could be covered only at a higher premium rate, but that the…