Justia Insurance Law Opinion SummariesArticles Posted in Kansas Supreme Court
Brennan v. Kan. Ins. Guar. Ass’n
John Brennan sued his physician, who had a $200,000 professional liability insurance policy, for medical malpractice. The insurer was declared insolvent after Brennan filed his claim but before he recovered. The insurer's insolvency triggered the Kansas Insurance Guaranty Association's (KIGA) statutory obligation to cover the insurer's obligations to the extent provided by the Kansas Insurance Guaranty Association Act. KIGA, which intervened in the suit, denied liability because Brennan received medical reimbursements from his personal health insurance policy that totaled more than the insolvent insurer's policy limits. The dispositive issue was whether Brennan's due process rights were violated by a retroactive statutory amendment permitting KIGA to offset Brennan's personal health insurance benefits against its liability on the insolvent insurer's $200,000 policy. The district court declared the statute's retroactive feature unconstitutional and entered judgment against KIGA for $200,000. The Supreme Court affirmed, holding (1) the retroactivity provision violated due process, and (2) Brennan's rights were governed by the preamended statute.