Insurer Sues Safe Auto Over $2.5M Auto Crash Deal

Law360, New York (September 10, 2009, 5:29 PM EDT) -- Excess liability insurer Westchester Surplus Lines Insurance Co. has hit Safe Auto Insurance Group Inc. with a breach of contract suit for allegedly botching settlement negotiations that led to a multimillion-dollar verdict in an underlying case stemming from an automobile accident.

In a complaint filed Tuesday in the U.S. District Court for the Middle District of Pennsylvania, WSLIC accuses Safe Auto of making material misrepresentations and breaching its contract regarding a management protection insurance policy.

Safe Auto allegedly claimed it had a policy of reporting all...
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