Homeowner's Insurance Coverage of Negligent Transmission of Sexually Transmitted Disease

Abstract

Every year, hundreds of thousands of Americans contract sexually transmitted diseases ("STDs") such as herpes, syphilis, gonorrhea and AIDS.' The Health Insurance Association has estimated that during the year 1987, large private health insurers paid $250 million in AIDS related claims alone. Thus far, insurance company exposure with regard to STD transmission has been limited to health insurance. Two 1988 cases, however, threaten to increase insurance company cost exposure to STD cases. The Appellate Division of the New York Supreme Court in State Farm Fire & Casualty Co. v. Irene S. (Anonymous), and the Minnesota Court of Appeals in North Star Mutual Insurance Co. v. R.W. both held that homeowner's liability insurance may cover an insured homeowner's negligent transmission of an STD to a third party.