Insurance – Mortgage Life Policy – Exclusion – ‘Narcotic’ – Methamphetamine – Ambiguity

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Hutchinson v. Liberty Life Insurance Co. (Lawyers Weekly No. 010-068-13, 4 pp.) (Costa M. Pleicones, J.) Appealed from Spartanburg County Circuit Court (Roger L. Couch, J.) On writ of certiorari to the Court of Appeals. S. C. S. Ct.

Holding: Where the mortgage life insurance policy at issue excluded benefits for an injury resulting from the insured’s being “under the influence of any narcotic,” the exclusion does not apply in this case in which the insured was under the influence of methamphetamine at the time of his accidental death.

We reverse the Court of Appeals’ decision, which reversed summary judgment for petitioner.

The use of the term “narcotic” in the exclusion rather than “unlawful drug” or “unlawful use of drug” creates, at minimum, an ambiguity as “narcotic” is a defined type of controlled substance rather than a generic term for illegally used substances. If there is any ambiguity, it must be construed in favor of petitioner.

The Court of Appeals erred in reversing the trial court’s order because, applying our rules of insurance policy construction, methamphetamine is not a narcotic within the meaning of the exclusion.