Ruling sought in federal insurance case

The Church Insurance Company of Vermont has asked the federal court to rule on whether it is required to provide coverage for legal action involving The Episcopal Church in South Carolina (TECSC) and 17 parishes who are suing The Episcopal Church and its local diocese, TECSC, over property matters.

The Church Insurance Company of Vermont (CIC-VT) filed a complaint in the U.S. District Court in Charleston on June 14 seeking a declaratory judgment in the case. On June 11, TECSC filed a complaint against CIC-VT, saying the company acted in bad faith by wrongfully making secret payments to churches that have sued TECSC, helping to fund their litigation against the diocese. Only one parish, St. Philip’s in Charleston, was referred to by name, but the complaint noted there could be others. St. Philip’s is part of the group that "disassociated" from The Episcopal Church in 2012-2013.

The CIC-VT complaint names TECSC as well as St. Philip's and 16 other disassociated parishes. All 17 parishes are plaintiffs in the lawsuit filed in 2013 against The Episcopal Church and TECSC, seeking control of diocesan and parish property. The South Carolina Supreme Court issued a final ruling in August 2017 saying that property of the diocese and 29 of the disassociated parishes is held in trust for The Episcopal Church and TECSC. Implementation of that decision is awaiting action in the circuit court in Orangeburg County.

CIC-VT is a captive insurance company of The Episcopal Church that has provided TECSC with insurance coverage since the early 2000s. “Captive” insurance is a form of self-insurance in which a parent group or groups create an insurance company to provide coverage for itself.
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CIC-VT in its June 14 complaint asks the federal court to determine who exactly is covered under their relevant policies and whether CIC-VT is required by law to provide a defense for TECSC or for any of the disassociated parishes.

Parishes named include:
Church of the Redeemer, Orangeburg
Old St. Andrews, Charleston
All Saints, Florence
Church of Our Saviour, John's Island
Holy Trinity, Charleston
Church of the Cross, Bluffton
St. Philip's, Charleston
St. John's, John's island
St. Bartholomew's, Hartsville
Church of the Holy Cross, Stateburg
Good Shepherd, Charleston
Resurrection, Surfside
Holy Comforter, Sumter
St. David's, Cheraw
St. Michael's, Charleston
St. Jude's, Walterboro
Christ Church, Mount Pleasant