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AMERICAN CONTINENTAL INS. v. PHICO INS.

No. COA98-728.

512 S.E.2d 490 (1999)

AMERICAN CONTINENTAL INSURANCE COMPANY, Plaintiff-Appellant, Cross-Appellee, v. PHICO INSURANCE COMPANY, Defendant-Appellee, Cross-Appellant.

Court of Appeals of North Carolina.

March 2, 1999.

Attorney(s) appearing for the Case

Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, L.L.P., by Michael E. Weddington and James Y. Kerr, II, Raleigh, for plaintiff-appellant, cross-appellee.

Cranfill, Sumner & Hartzog, L.L.P., by Richard T. Boyette and Kari Russwurm Johnson, Raleigh, for defendant-appellee, cross-appellant.

EDMUNDS, Judge.

Defendant PHICO Insurance Company (PHICO) provided professional liability insurance coverage to Caldwell Memorial Hospital (Caldwell) in Lenoir, North Carolina from 1988 to 1 October 1994. PHICO's policy was a "claims-made" policy, which obligated PHICO to assume coverage when a claim was asserted against Caldwell during the policy period, and Caldwell in turn reported the claim to PHICO. Effective 1 October 1994, Caldwell terminated its relationship...

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