Question

John’s house was destroyed by a fire. His house was insured by Nationwide Insurance Company. A Nationwide arson investigator, after examining the scene of the fire and relevant documents, determined that John committed arson, i.e., he intentionally started a fire to his house. During the fire suppression, a firefighter was injured. That firefighter sues John. One of the claims in the Complaint is that John’s house was destroyed due to an electrical fire and John was negligent because he failed to have a sprinkler system in his home as required by law. Which statement best describes Nationwide’s obligation owed to John.

A.)      Even if proven that John intentionally started the fire to his own house, Nationwide must defend John and pay any damages suffered by the injured firefighter.

B.)      If the firefighter prevails on his negligence per se claim, Nationwide will have to pay any and all damages suffered by the firefighter even though the insurance company proves John committed arson.

C.)      Nationwide can disclaim coverage based upon arson, but it may have an obligation to defend John.

D.)     None of the above.

Answer 1

C) Nationwide can disclaim coverage based upon arson, but it may have an obligation to defend John