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North Star Mutual Insurance Co. v. Linn6/21/2005
exclusion would otherwise apply to occurrences arising out of Linn's daycare business, the exception creates an ambiguity when applied to the occurrence at issue here. In construing the exception to the exclusion in favor of the insured, we conclude that respondent has a duty to defend Linn in the underlying suit. See Jostens, Inc. v. Mission Ins. Co., 387 N.W.2d 161, 165-66 (Minn. 1986) (stating that an insurer has a duty to defend claims that are "arguably" covered by a policy).
We conclude that because respondent has a duty to defend Linn under the homeowners' policy, the district court erred in granting summary judgment in favor of respondent. We reverse and remand for further proceedings consistent with this opinion.
Reversed and remanded.
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