AIX Specialty Insurance Company is asking a Utah federal court to rule it doesn’t have to cover a wrongful death claim tied to a senior living facility’s van accident.
On August 11, 2025, AIX filed a petition for declaratory relief in the United States District Court for the District of Utah, targeting Kim’s New Star LLC, which operates as Twin Oaks Senior Living, along with several individuals and related businesses. The insurer’s move comes after the estate and family of Thaes Webb Jr. sued Twin Oaks, alleging negligence and wrongful death after a tragic transport incident.
Here’s what’s at stake: AIX provided both a primary and an excess insurance policy to Kim’s New Star LLC, covering the period from March 16, 2023, to March 16, 2024. Each policy tops out at $1 million per claim. But AIX says the fine print matters - specifically, exclusions for incidents involving vehicles and for certain professional services.
The underlying lawsuit, filed in Utah state court, claims that Webb and his spouse were residents at Twin Oaks. On April 25, 2023, Webb was being driven to a medical appointment in a van owned by the facility and operated by its executive director, Matthew Cielo. According to the complaint, Webb was not properly secured in his wheelchair and suffered fatal injuries after tipping over during the ride. The suit also points to a string of earlier falls and alleged failures in care.
AIX’s petition lays out its argument: the insurance policies specifically exclude coverage for bodily injuries that result from the use or operation of a vehicle owned by the insured. The policy language, as quoted in the complaint, says there’s no coverage for injuries “arising out of the ownership, maintenance, use or entrustment to others of any auto.” The company also notes that Utah courts have interpreted these exclusions broadly, meaning anything tied to the use of the van is likely out of bounds for coverage.
There’s another wrinkle. The policies also have professional services exclusions. That means AIX doesn’t have to cover claims tied to the rendering or failure to render professional services, unless they fall under a narrow definition of eldercare services. In this case, AIX says the claims are inseparable from the van use, so the exclusions still apply.
AIX says it has been clear from the start. The company sent declination letters to the defendants in September 2023 and again in February 2024, explaining why coverage was denied. Despite these notices, the defendants have continued to push AIX to negotiate and settle the claims. AIX maintains it has no duty to defend or pay for any damages related to the van incident or for breach of contract claims included in the lawsuit.
The insurer is now asking the court to make it official: no duty to pay, no duty to defend, and no duty to settle claims related to the wrongful death of Thaes Webb Jr. or any other damages stemming from the use of the facility’s van. AIX also wants confirmation that it’s not on the hook for breach of contract claims.
For insurance professionals, this case is a reminder that policy exclusions can make all the difference when it comes to coverage. The outcome could shape how insurers and eldercare facilities approach coverage for transportation and care-related incidents.
As of now, this case is just getting started. The court hasn’t ruled on AIX’s petition or the underlying wrongful death lawsuit. All the details are based on claims made in the filed complaint, not established facts. But for anyone in the insurance business, it’s a story worth watching.
