By Patsy R. Brumfield/NEMS Daily Journal
OXFORD – Alfa Insurance Co. asks a federal court to declare it isn’t responsible for damages to two minors allegedly sexually abused in Prentiss County foster care.
In a complaint filed last week in U.S. District Court, Birmingham Ala.-based Alfa said the minor children living in the home of Harold and Betty McMahan are not entitled to any money from Alfa.
The girls’ mother filed a complaint April 2, 2003, in circuit court in Prentiss County claiming the McMahans failed to provide a safe foster home. She claimed the girls were sexually assaulted by another minor in the home “in the latter part of calendar year 2001.”
The court entered a default judgment against the couple in 2008, and Alfa denied coverage.
Alfa said the McMahans’ homeowners policy did not take effect until Jan. 30, 2002.
“A substantial question is presented” based on information to Alfa, it said. The company asked the court to find that no coverage existed and that it has no duty to pay damages to the minors or the McMahans.
Under the terms of the policy, Alfa said, the minors in the household would have been considered “insureds,” who may not make a liability claim under the policy.
Insureds who commit interntional acts of sexual misconduct also are excluded from coverage, the company said.
The minors, their mother and the McMahans have not yet responded to the complaint.
The case is assigned to Chief U.S. District Judge Michael P. Mills.