Federal, Fremont Settle E&O Coverage For $10M

Law360, New York (May 10, 2010, 3:43 PM EDT) -- Federal Insurance Co. has agreed to pay bankrupt subprime lender Fremont General Corp. the full $10 million loss limits of an errors and omissions policy to cover subprime lending claims, dropping an 18-month battle over whether the claims are outside the scope of its bankers professional liability policies.

Fremont and Federal jointly asked for approval of the settlement agreement in the U.S. Bankruptcy Court for the Central District of California on Friday. Under the deal, Federal will pay the debtor the full amount of the remaining...
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