A homeowners insurer was granted summary judgment in its favor on its declaratory judgment action requesting determination of the respective obligations under its policy and coverage extended to the insured by virtue of his membership in the National Rifle Association. The trial court subsequently granted summary judgment in favor of the homeowners insurer, requiring the underwriters who issued the liability policy arranged by the NRA for its members to pay one-half of the settlement and one-half of the defense costs stemming from a wrongful death and survival action brought against the insured. The insured had accidentally shot and killed a hunting companion.

On appeal it was noted that the homeowners policy liability coverage provided: "This insurance is excess over any other valid and collectible insurance except insurance written specifically to cover as excess over the limits of liability that apply in this policy." The NRA policy stated: "With respect to occurrences covered under this policy, but not covered under other valid and collectible insurance, Underwriters shall be liable as if this policy is the primary insurance. . . ." However, the statement was followed by this provision: "Underwriters shall be liable only for the ultimate net loss in excess of the amount payable under any other valid and collectible insurance."

The appeal court held that the homeowners insurer was liable for the entire settlement amount and defense costs. The trial court judgment was reversed in favor of the NRA insurer and against the homeowners insurer.

(AMERICAN CONCEPT INSURANCE COMPANY, Plaintiff, Appellee v. CERTAIN UNDERWRITERS AT LLOYDS OF LONDON, Defendant, Appellant; REISENWEBER, Defendant. South Dakota Supreme Court. No. 17041-r-FEH. March 13, 1991. CCH 1991 Fire and Casualty Cases, Paragraph 3052.)