Ken Moorhead Oil Co. v. Federated Mutual Insurance

Toal, Justice:

Federated Mutual Insurance Company (“Federated”) challenges the circuit court’s denial of its request for reimbursement from a state-created fund, the Superb Account, of amounts claimed by Federated’s insured, Ken Moorhead Oil Co., Inc. (“Moorhead” or “Moorhead Oil”), under pollution liability policies issued in 1988 and 1989. Federated contends that the coordination of benefits clauses in its contracts with Moorhead Oil were a central feature of the insurance policies. Those clauses provided, in essence, that coverage under the insurance policies would be excess to any funds…