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Making Sick Horse Well is not a Breach of Horse Mortality Policy 

The parties sued over an insurance dispute concerning a champion show  horse named Thomas. Thomas is alive and well, but Thomas\'s owner, Julie  Greenbank, sued her insurer, Great American Assurance Company, for  failing to provide mortality coverage for Thomas.  In Julie Greenbank v.  Great American Assurance Company, No. 21-2622, United States Court of  Appeals, Seventh Circuit (August 30, 2022) Greenbank alleged that Great  American breached the insurance policy and acted in bad faith by  unreasonably withholding consent for Thomas\'s authorized humane  destruction, opting instead to perform a tenotomy that destroyed  Thomas\'s use as an athletic show horse.  She also alleged that Great American\'s continued care and control over  Thomas, long after the policy terminated, constitutes conversion and  theft. The district court dismissed her claims at summary judgment, and  Greenbank appealed.  

THE INSURANCE POLICY  In September 2017, Greenbank purchased an American Saddle bred gelding  horse named Awesome whose barn name was "Thomas" for $500,000. Greenbank  intended to use Thomas as an athletic show horse for competitive  purposes.  Shortly after this purchase, Greenbank obtained a mortality insurance  policy with Great American for Thomas\'s full purchase price. The policy  provided coverage in the event of Thomas\'s "death" or "authorized humane  destruction."  

Under the policy, a horse\'s death or authorized humane destruction must  result, in part, from an illness, injury, or specific surgery.  To obtain coverage in the event of Thomas\'s death or authorized humane  destruction, the policy required Greenbank to meet certain conditions  precedent. One condition precedent required Greenbank to immediately  notify Great American if Thomas becomes ill. The policy notes that  failure to provide immediate notice of Thomas\'s illness "will invalidate  any claim under the policy." If Thomas becomes ill, the policy allows  Great American to, with Greenbank\'s permission, assume control over  Thomas\'s treatment.  In addition to mortality coverage, the policy also includes a "Major  Medical Endorsement" (MME) and a "Guaranteed Renewal Endorsement" (GRE).