Overview
On August 11, 2025, AIX Specialty Insurance Company filed a petition for declaratory relief in the U.S. District Court for the District of Utah, seeking a ruling that it is not obligated to cover a wrongful death claim against Kim’s New Star LLC, operating as Twin Oaks Senior Living, related to a fatal van accident. The claim stems from the death of Thaes Webb Jr., a resident at the facility, who died after a transport incident on April 25, 2023. AIX argues that exclusions in its insurance policies for vehicle-related injuries and professional services relieve it of responsibility to defend or indemnify the facility. The case highlights broader issues of insurance coverage for eldercare facilities and transportation-related incidents.
Details of the Incident
Thaes Webb Jr. and his spouse were residents at Twin Oaks Senior Living in Utah. On April 25, 2023, Webb was being transported in a facility-owned van, driven by executive director Matthew Cielo, to a medical appointment. According to the wrongful death lawsuit filed by Webb’s estate and family in Utah state court:
- Webb was not properly secured in his wheelchair during the ride.
- The wheelchair tipped over, causing fatal injuries.
- The lawsuit also alleges prior falls and failures in care by the facility, contributing to negligence claims.
AIX’s Legal Position
AIX provided both primary and excess insurance policies to Kim’s New Star LLC, each with a $1 million per-claim limit, covering March 16, 2023, to March 16, 2024. However, AIX contends it has no duty to cover the claim due to specific policy exclusions:
- Vehicle Use Exclusion: The policies exclude coverage for bodily injuries “arising out of the ownership, maintenance, use, or entrustment to others of any auto” owned by the insured. AIX argues the van accident falls squarely under this exclusion, as the injury resulted from the operation of the facility’s vehicle. Utah courts, AIX notes, interpret such exclusions broadly.
- Professional Services Exclusion: The policies also exclude claims tied to the rendering or failure to render professional services, except for narrowly defined eldercare services. AIX asserts that the claims are inseparable from the van’s use, reinforcing the exclusion.
- Breach of Contract: AIX also seeks a ruling that it is not liable for breach of contract claims included in the lawsuit.
AIX sent declination letters to the defendants in September 2023 and February 2024, clearly stating its position that the claims were not covered. Despite this, the defendants continued to push for AIX to negotiate and settle. AIX now seeks a court declaration to confirm it has no duty to defend, indemnify, or settle claims related to Webb’s death or other damages tied to the van incident.
Broader Context and Implications
This case underscores challenges in insurance coverage for senior living facilities, particularly regarding transportation services, which are often critical for residents but carry significant risks. Similar cases highlight the complexities of wrongful death claims in eldercare settings:
- Negligence in Transport: A 2017 Michigan case resulted in a $600,000 settlement when a 95-year-old resident died after a wheelchair fall in a facility van due to improper securing, showing courts often hold facilities liable for negligence.
- Policy Exclusions: Insurance companies frequently invoke exclusions to limit liability, as seen in other disputes where vehicle-related or professional service exclusions are debated. AIX’s case tests whether Utah courts will uphold such exclusions broadly.
- Eldercare Liability: Wrongful death lawsuits against assisted living facilities often cite negligence, such as inadequate staffing or failure to follow protocols (e.g., securing wheelchairs). These cases typically settle for $50,000–$250,000, though severe cases can reach higher, as in the Michigan example.
The lawsuit also reflects broader issues in eldercare:
- Vulnerable Populations: Elderly residents, especially those with mobility issues, are at high risk, and facilities face scrutiny for ensuring safety during transport.
- Insurance Tactics: Insurers like AIX often deny claims to minimize payouts, leaving facilities or families to bear costs unless courts rule otherwise.
Current Status
The Utah federal court has not yet ruled on AIX’s petition, and the underlying state wrongful death lawsuit remains ongoing. All details are based on claims in the filed complaint, not established facts. The outcome could set a precedent for how insurance exclusions are applied to eldercare transportation incidents, impacting both facilities and insurers. AIX’s petition emphasizes the importance of clear policy language, while the plaintiffs may argue the facility’s negligence overrides such exclusions.
Critical Perspective
While AIX’s argument hinges on technical policy exclusions, the case raises questions about whether insurers should bear responsibility for negligence by insured facilities, especially when vulnerable residents are harmed. The broad interpretation of vehicle exclusions could leave facilities underinsured for common services like medical transport, potentially shifting financial burdens to families or taxpayers (e.g., via Medicare/Medicaid liens). Conversely, upholding AIX’s position might encourage stricter safety protocols but could also incentivize insurers to draft overly restrictive policies, limiting coverage for legitimate claims. The absence of reported reactions on X or major media suggests this case is still under the radar, but it’s one to watch for insurance and eldercare professionals.