Tom I. McFarling Etc. v. Charles T. Azar, Employers' Fire Insurance Company, Inc.

GODBOLD, Circuit Judge:

This case poses in an unusual context a question of the scope of coverage of a doctor’s professional liability insurance policy. The precise question is whether, in a suit by a life insurance company on whose behalf a doctor has examined an applicant for insurance, the policy covers acts of the doctor constituting fraud against the life insurance company.

An applicant for life insurance, an insurance agent, and a doctor employed by the life insurance company to examine the applicant conspired to defraud the life insurance company in procuring life insurance for the…