Fulton v. Beacon National Insurance Co., 416 S.W.3d 759

Fulton owned a rental home and purchased a Beacon policy for it.
The policy excludes damage caused by freezing unless the insured maintains heat or drains water.
The tenant vacated on Dec. 8, 2008; utility service was shut off the same day.
The residence froze and burst a pipe during vacancy when temperatures dropped.
Beacon denied coverage for failure to drain water; circuit court granted Beacon summary judgment and State Auto dismissal without prejudice; Fulton appeals.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the policy unambiguously excludes coverage	Fulton argues liberal construction should require only reasonable care to avoid loss.	Beacon argues the policy unambiguously requires draining water or maintaining heat to obtain coverage.	Unambiguous; coverage denied without draining water; affirmed.
Whether the circuit court properly dismissed State Auto for failure to state a claim	Fulton contends claims against State Auto are premised on coverage issues.	State Auto moved to dismiss for lack of contract facts and personal jurisdiction; no viable claim stated.	Court affirmed dismissal for failure to state a claim.

Carver v. Allstate Ins. Co., 77 Ark.App. 296, 76 S.W.3d 901 (Ark. App. 2002) (background on insurer duties and interpretation of policy language)
Nationwide Mut. Ins. Co. v. Worthey, 314 Ark. 185, 861 S.W.2d 307 (Ark. 1993) (rule that exclusionary language controls when unambiguous)
Baskette v. Union Life Ins. Co., 9 Ark.App. 34, 652 S.W.2d 635 (Ark. App. 1983) (application of liberal construction in insurance cases when ambiguous)
Jordan v. Atlantic Cas. Ins. Co., 344 Ark. 81, 40 S.W.3d 254 (Ark. 2001) (illustrates interpretive approach to insurance contracts)
Caplener v. Bluebonnet Milling Co., 322 Ark. 751, 911 S.W.2d 586 (Ark. 1995) (appropriately considers policy language and exclusions)
Castaneda v. Progressive Classic Ins. Co., 357 Ark. 345, 166 S.W.3d 556 (Ark. 2004) (policy interpretation and exclusions analyzed)