Aetna Insurance Co. v. Aaron12/4/1996
broader than and different from the duty to pay." Luppino v. Vigilant Ins. Co., 110 Md. App. 372, 381, 677 A.2d 617 (1996). An insurer has a duty to defend its insured if the claim asserted against the insured is covered, or even potentially covered, by the applicable insurance policy. Chantel Assoc. v. Mt. Vernon Fire Ins. Co., 338 Md. 131, 656 A.2d 779 (1995); Aetna Casualty & Surety Co. v. Cochran, 337 Md. 98, 651 A.2d 859 (1995); St. Paul Fire & Marine Ins. v. Pryseski, 292 Md. 187, 438 A.2d 282 (1981); Brohawn v. Transamerica Ins. Co., 276 Md. 396, 347 A.2d 842 (1975); Reames v. State Farm Fire & Cas. Ins., 111 Md. App. 546, 683 A.2d 179, 1996 Md. App. LEXIS 128, *24 (1996). We recently said that "the analysis concerning an insurer's duty to defend a lawsuit filed against its insured . . . is governed solely by evaluating the causes of action actually alleged by the plaintiff in that lawsuit, along with the relevant extrinsic evidence." Reames, 111 Md. App. 546, 560, 683 A.2d 179, 1996 Md. App. LEXIS 128 at *24; see also Chantel, 338 Md. at 142 ("An insurer's duty to defend is triggered when an examination of the policy, the complaint and appropriate extrinsic evidence discloses a potentiality of coverage under the insurance coverage."); Cochran, 337 Md. at 107-12. Thus, the duty to defend arises as long as the complaint against the insured alleges "action that is potentially covered by the policy, no matter how attenuated, frivolous, or illogical that allegation may be." Sheets v. Brethren Mut. Ins. Co., 342 Md. 634, 643, 679 A.2d 540 (1996) (italics in original).
In St. Paul Fire & Marine Ins. v. Pryseski, 292 Md. 187, 438 A.2d 282, the Court applied a two part test to determine if an underlying suit raises a potential for coverage under an insurance policy. The Court said:
In determining whether a liability insurer has a duty to provide its insured with a defense in a tort suit, two types of questions ordinarily must be answered: (1) what is the coverage and what are the defenses under the terms and requirements of the insurance policy? (2) do the allegations in the tort action potentially bring the tort claim within the policy's coverage? The first question focuses upon the language and requirements of the policy, and the second question focuses upon the allegations of the tort suit.
Pryseski, 292 Md. at 193. Applying the Pryseski test, we must determine the extent of coverage that the Policy affords to Aaron, and whether the allegations in the Council's suit are potentially covered by the Policy. Cochran, 337 Md. at 103-04.
"Under Maryland law, when deciding the issue of coverage under an insurance policy, the primary principle of construction is to apply the terms of the insurance contract itself." Bausch & Lomb, Inc. v. Utica Mut. Ins. Co., 330 Md. 758, 779, 625 A.2d 1021 (1993). We begin by examining the Policy itself. The law is well settled in Maryland that an insurance policy is interpreted just like any other contract. Collier v. MD-Individual Practice Ass'n, 327 Md. 1, 607 A.2d 537 (1992); National Grange Mut. Ins. Co. v. Pinkney, 284 Md. 694, 399 A.2d 877 (1979); Bentz v. Mutual Fire, Marine & Inland Ins. Co., 83 Md. App. 524, 575 A.2d 795 (1990). Therefore, courts in Maryland do not follow the rule that an insurance policy must be strictly construed against the insurer. Bausch & Lomb, 330 Md. at 779; Cheney v. Bell National Life, 315 Md. 761, 766, 556 A.2d 1135 (1989). See also Hartford Acc. and Indem. Co. v. Scarlett Harbor Assoc. Ltd. Partnership, 109 Md. App. 217, 290, 674 A.2d 106, cert. granted, 343 Md. 334 (1996). As with other contracts, a court must ascertain and effectuate the parties' intentions by analyzing the
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