Williams v. National Casualty Co.

132 S.W.3d 244, 2004 Mo. LEXIS 60, 2004 WL 885760
CourtSupreme Court of Missouri
DecidedApril 27, 2004
DocketSC 85643
StatusPublished
Cited by9 cases

This text of 132 S.W.3d 244 (Williams v. National Casualty Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams v. National Casualty Co., 132 S.W.3d 244, 2004 Mo. LEXIS 60, 2004 WL 885760 (Mo. 2004).

Opinions

MICHAEL A. WOLFF, Judge.

Introduction

Section 375.995.4 provides that “[t]he availability of any insurance contract shall not be denied to any insured or prospective insured on the sole basis of the sex or marital status of such insured or prospective insured.... Specific examples of practices prohibited by this section include, but are not limited to the following: ... (7) Restricting, reducing, modifying, or excluding benefits relating to coverage involving the genital organs of only one sex_”1

National Casualty Company provided health insurance to Buddy Williams as part of an insurance plan through his professional organization. National Casualty’s certificate of insurance to Buddy Williams contained an “Exception” that excluded “any disease or disorder of the prostate.”

Buddy Williams was diagnosed with prostate cancer 53 months after the policy coverage began. National Casualty denied payment of Buddy Williams’ claims for nearly $60,000 in expenses for prostate cancer treatment. National’s denial was based solely on the “Exception” for diseases of the prostate, an organ that only males possess.

National Casualty contends that the Exception was not invalid under the statute because sex was not the “sole basis” for the exclusion of coverage. The Exception, National Casualty contends, was inserted in Buddy Williams’ certificate of insurance because he had a medical history of treatment for prostatitis (an inflammation or infection of the prostate).2

The policy allows for specific exclusions, called exceptions, from coverage based on pre-existing conditions as shown in the insured’s medical history. The prostate is not a pre-existing medical condition. It is, in the words of the statute, a genital organ of only one sex.3

Buddy Williams’ medical records show a history of prostatitis. There is no record of prostate cancer pre-existing the coverage. To avoid the statute’s prohibition, National Casualty must show that the Exception is not on the “sole basis” of sex. National Casualty’s contention is that the Exception — for all diseases or disorders of the prostate — is based on Buddy Williams’ medical history of prostatitis and, therefore, is not on the “sole basis” of sex.

The record, however, fails to demonstrate any connection between Buddy Williams’ prostate cancer and his pre-ex-isting condition. Thus, the statute applies to prohibit the denial of coverage for Buddy Williams’ prostate cancer.

The Trial Court Decision and This Court’s Review

Buddy Williams sued National Casualty for his medical expenses. After Buddy Williams died of prostate cancer, his widow, Jacqueline Williams, as personal representative of his estate, was substituted [246]*246as plaintiff. The case was tried on a stipulation of facts that includes the medical record of Buddy Williams at the time the policy coverage commenced.

The circuit court found that section 375.995 does not invalidate the Exception and entered judgment for National Casualty. Because this case was submitted on stipulated facts, review is confined to a determination of whether the trial court drew the correct legal conclusions from the facts so stipulated. David Ranken, Jr. Technical Institute v. Boykins, 816 S.W.2d 189, 191 (Mo. banc 1991) (overruled on other grounds), applying Murphy v. Carron, 536 S.W.2d 30 (Mo. banc 1976).

“Where insurance policies are unambiguous, they will be enforced as written absent statute or public policy requiring coverage.” Peters v. Employers Mutual Casualty Co., 853 S.W.2d 300, 302 (Mo. banc 1993). “The parties to a purely voluntary insurance contract may agree to such terms and provisions as they see fit to adopt, subject only to the requirements that the contract is lawful and reasonable.” American Family Mutual Insurance Co. v. Ward, 789 S.W.2d 791, 795 (Mo. banc 1990). The “Exception” will be void if it is found to violate the statute.

Following opinion by the Court of Appeals, Southern District, this Court granted transfer and has jurisdiction. Mo. Const, article V, section 10. The circuit court’s judgment is reversed, and the case is remanded.

The Insurance Coverage and Its Exception

In order to decide whether an exclusion of diseases of an organ of only one sex is valid notwithstanding the statute, it is necessary to examine the insurance policy to determine whether there is a legitimate basis for refusing coverage. National Casualty contends that its refusal to cover expenses of Williams’ prostate cancer was not on the “sole basis” of sex because there was a policy exclusion— based on Williams’ medical history of a pre-existing condition — that provided a legitimate basis for its refusal. The validity of the other reason — a pre-existing condition — is dependent on the language of the policy.

Buddy Williams obtained a “certificate or policy of insurance from [National Casualty] pursuant to an insurance plan of the National Association of Professional Agents,” under which health insurance is provided by National Casualty to insurance agents and their employees. Buddy Williams’ certificate of insurance, which also covered his wife, was effective August 1, 1994. National Casualty provided coverage to members of the association and was allowed to write exceptions in individual certificates of insurance, pursuant to provisions of the policy, upon unsatisfactory evidence of individual insurability, in other words, upon evidence of pre-existing conditions.4 On the application for coverage, Buddy Williams indicated that he suffered from prostatitis. Williams’ medical records confirmed that he was treated in the past for chronic prostatitis.

The policy provides “Major Medical Benefits” that include “allowed charges” that are “medically necessary to the diagnosis or treatment of an illness or injury” ... and are not “excluded anywhere in the policy ... ”. The coverage under the policy is subject to limitations for preexisting conditions. A pre-existing condition is either “a condition for which a [247]*247covered person received medical advice or treatment within 24 months” prior to the effective date of coverage or “a condition which, in the opinion of a qualified doctor” began before the policy date and “produced symptoms that would cause an ordinarily prudent person to seek diagnosis or treatment within 12 months immediately preceding the date he or she became insured under the policy.” The policy permits exclusion of pre-existing “conditions” going back beyond that 24-month period where they are “excluded by name or specific description.”5

In the policy or certificate issued to Buddy Williams there is no pre-existing condition of the prostate “excluded by name or specific description.” There is, however, an “Exception Endorsements” section that excludes “any disease or disorder” of the prostate. That section provides:

EXCEPTION ENDORSEMENTS
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Williams v. National Casualty Co.
132 S.W.3d 244 (Supreme Court of Missouri, 2004)

Cite This Page — Counsel Stack

Bluebook (online)
132 S.W.3d 244, 2004 Mo. LEXIS 60, 2004 WL 885760, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-national-casualty-co-mo-2004.