ESKRIDGE v. EDUCATOR AND EXECUTIVE INSURERS


677 S.W.2d 887 (1984)

Betty Watson ESKRIDGE, Executrix of the Estate of Gene Bergan Eskridge, deceased; Betty Watson Eskridge, Individually; Betty Watson Eskridge, as next friend for Janet Louise Eskridge, an infant; Lillian McGee Passmore and Norman L. Passmore, Movants, v. EDUCATOR AND EXECUTIVE INSURERS, INC. and Selective Insurance Company and/or its successor, American Continental Insurance Company, Respondents.

Supreme Court of Kentucky.

October 4, 1984.


Attorney(s) appearing for the Case

Tom H. Pierce, James D. Rouse, Rouse, Rouse, Combs & Pierce, Versailles, for movants Eskridge.

Andrew M. Stephens, Shuffett, Karem & Mooney, Lexington, for movants Passmore.

Gary Barr, C. William Swinford, Stoll, Keenon & Park, Lexington, for respondent Educator.

Charles E. Duncan, Duncan & Lehnig, Louisville, for respondent Selective Ins.


VANCE, Justice.

The principal question in issue is the liability of an insuror for damages in excess of its policy limits in a case where the insuror erroneously denied coverage and refused to defend.

On September 8, 1968, an automobile operated by Lillian Passmore collided with an automobile operated by Gene Eskridge, who was killed in the accident. The Passmore vehicle was previously insured by Educator and Executive Insurer's, Inc. for the policy period...

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