In re Liquidation of Legion Indemnity Company

Court erred in granting petition by State Liquidator of insurance company for disallowance of a contested claim by 23 individual governmental employees who obtained a judgment against construction company in negligence action for injury from exposure to toxic mold in buildings constructed in Texas. Court erroneously construed definitions and language of policy Exclusion broadly to include mold-related claims when any policy exclusion, regardless of its label, that excludes coverage must be narrowly construed. Policy's Exclusion did not include the words "mold" or "fungi" although insurer could have easily inserted the words in the Exclusion to avoid different interpretations. (NEVILLE and HYMAN, concurring.)