Kansas City College of Osteopathic Medicine v. Employers' Surplus Lines Insurance Company

PETTINE, Chief District Judge.

This case poses the question of whether a contract of insurance, bargained between equals and supported by consideration, can be binding, although the procurer of insurance intentionally prevents the risk from attaching. We answer, on the facts of this case, in the affirmative.

In this diversity action, Kansas City College of Osteopathic Medicine (KCCOM) seeks return of a $200,000 insurance premium from Employers’ Surplus Lines Insurance Company (ESLIC), a Delaware corporation with its principal place of business in Boston. KCCOM argued to the court below that…