MHM Services v. Assurance Company of America

Court properly ruled that insured, a company which contracts to provide health services, including mental health services, to governmental entities including DOC, was not entitled to $2.5 million in coverage from its excess/umbrella insurer for $3.5 million tort settlement. Suit filed by sexual assault victim alleged that insured negligently failed to perform pre-release screening for inmate's civil commitment as a sexually violent person. Actual language in notice clause of excess policy did not grant insured any discretion as to notice, and insured's failure to give notice to excess insurer until two years after service of suit was unreasonable, and deprived insurer of any meaningful participation in defense until last possible stage of litigation. (EPSTEIN and HOWSE, concurring.)