A private school applied for and paid for a "Trustee and Personnel Liability Policy" for the protection and benefit of such individuals. Under "Item 1. Insured's Name and Address" in the declarations of the policy that was issued, there appeared the name and mailing address of the school. The insurer refused defense when the school itself was named in a negligence action by a parent of a student, claiming that the school was not covered under the policy. The school filed a motion for summary judgment, and the trial court granted it on the grounds that the policy was ambiguous. The insurer appealed.

The appeal court verified that the word "Insured" was defined in the policy to mean "all persons who were, now are, or shall be elected or appointed members of the Board of Trustees or School Directors of the School and shall also include all persons who were, now are, or shall be employees of the School, including student teachers or volunteer workers." (The trial court had found Item 1 in the declarations inconsistent with this definition of "Insured.")

The appeal court then took note of Condition 11, "Authorization Clause" in the policy, reading as follows: "By acceptance of this Policy, the Insureds as defined in Insuring Agreement IIA agree that the School named in Item 1 of the Declarations shall act on behalf of all Insureds with respect to the giving and receiving notice of claim or cancellation, the payment of premiums and the receiving of any return premiums which may be due under the policy."

The court concluded that the school was an agent of the insureds, but that the school itself was not an insured under the policy. It had applied for insurance in the application that it completed only for its trustees and personnel. It paid no premium for its own protection. Accordingly, the judgment of the trial court was reversed in favor of the insurance company and against the school.

(ST. PAUL GUARDIAN INSURANCE COMPANY, Appellant v. THE CANTERBURY SCHOOL OF FLORIDA, INC., Appellee. Florida District Court of Appeal, Second District. Case No. 88-01036. August 11, 1989, CCH 1989-90 Fire and Casualty Cases, Paragraph 2008.)