Insurance

By: Lindsay Najbrt, Rebecca Marley, & Emily Hill

Key Terms

Homeowner: a person who owns a house that he or she lives in.

Overdose: an excessive and dangerous dose of a drug. Guest: a person who is invited to visit the home of or

take part in a function organized by another.

Controlled Substance: a drug or chemical whose possession and use are controlled by law.

Descriptions & Facts 

Description: Homeowner’s insurance policy does not cover the liability for bodily injury that are caused by the use of controlled substances. If a guest dies in the homeowner’s home from this, the insurance company is not to be held liable.

Facts: McMaster was a guest at the home of the Scaduto, while visiting McMaster overdosed on Scaduto’s prescription drug propoxyphene. McMaster mother sued Scaduto for the death of her son saying that Scaduto was negligent for leaving the drug out while he knew that McMaster was in an emotional stage. Scaduto wanted his insurer to cover this payment. The insurer fought back saying that his homeowners insurance did not cover him in this instance.

Decision 

McMaster’s use of the drugs was improper. In his insurance policy it was stated that the exclusionary clause eliminates liability by the insurer. In this situation the drug was a controlled substance. So in the end the insurer could not be held liable for the death of McMaster.