Wawanese Gen. Ins. v. A.M. CA2/2

FACTS

Wawanesa’s Policy Wawanesa issued a homeowners policy (policy) to Mary. In relevant part, it stated: “If a claim is made or a suit is brought against an ‘insured’ for damages because of ‘bodily injury’. . . caused by an ‘occurrence’ to which this coverage applies, [Wawanesa] will: [¶] 1. Pay up to our limit of liability for the damages for which the ‘insured’ is legally liable.” “Occurrence” was defined to mean “an accident, including continuous or repeated exposure to substantially the same harmful conditions, which results, during the policy period, in [¶] a. ‘Bodily injury.’” As an exclusion, the policy provided that Mary’s coverage for personal liability did not apply to “‘bodily injury’ . . . : [¶] . . . [¶] k. Arising out of sexual molestation, corporal punishment, or physical or mental abuse.” The policy period was October 25, 2008, to October 25, 2009. Mary’s ex- husband, Robert M. (Robert), was not an insured. Shelley’s Underlying Action On behalf of the minors, Shelley1 filed an action alleging: A.M. suffers from cerebral palsy, scoliosis and severe displacement of her organs, and she has the mental and emotional functioning of an eight-year old. Her mobility and…