Federal Insurance Sued For SEC Probe Defense Costs

Law360, New York (May 13, 2010, 2:12 PM EDT) -- Insurance holding company ProCentury Corp. has slapped Federal Insurance Co. with a breach of contract and bad faith suit accusing it of wrongly failing to cover defense costs incurred in a U.S. Securities and Exchange Commission investigation of ProCentury's financial statements.

ProCentury filed its complaint Wednesday in the U.S. District Court for the Eastern District of Michigan, claiming that the defendant was obligated to cover $223,000 in defense attorneys' fees and costs stemming from the SEC investigation.

ProCentury says Federal issued it a policy that obligated...
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