Lawsuit Filed Against School District and Insurance Carrier for Denied Paralysis Coverage

A former high school football player, LaQuan Phillips, has sued his school district and insurance carrier after a bid to tap $2.5 million in coverage was denied. Phillips was temporarily paralyzed during a game and incurred over $195,000 in medical expenses. The lawsuit claims the school district failed to obtain proper coverage for student athletes and that the insurance carrier, National Union Fire, breached the contract by denying the claim.

Key Takeaways:

• The lawsuit was filed on behalf of LaQuan Phillips against the Clark County School District and National Union Fire Insurance of Pittsburgh.
• Phillips was temporarily paralyzed during a football game on September 5, 2008, and incurred over $195,000 in medical expenses.
• The school district had acquired $2.5 million worth of coverage for third-party claims through an American International Group Inc. policy underwritten by National Union Fire.
• National Union Fire denied the claim in June 2009, and the school district is accused of negligence in failing to obtain coverage for catastrophic-related injuries.
• The lawsuit also maintains that National Union Fire breached the contract by "seeking and interpreting medical evaluations of the plaintiff's conditions in a manner best calculated to deny benefits."

Statistics:

• $195,000: The amount of medical expenses incurred by LaQuan Phillips as a result of his paralysis.
• $2.5 million: The amount of coverage denied to Phillips by National Union Fire.
• 2.40%: The increase in shares of AIG (NYSE: AIG) on the afternoon of December 1, 2010.
• 9 members: The number of intercompany pools led by National Union Fire Insurance Company of Pittsburgh.

Sources:

• A. M. Best Company, Inc. via COMTEX (December 1, 2010)
• Clark County District Court in Las Vegas (filed case)
• Court records of LaQuan Phillips' injury on September 5, 2008