Health Subcontractor Seeks Coverage For $78M Settlement

Law360, New York (November 14, 2011, 3:52 PM EST) -- Maximus Inc., a subcontractor on a Texas public heath project, sued two of its excess insurers Thursday in Virginia federal court, saying they refused to pay their share of $78 million in losses relating to a 2008 settlement and contract cancellation.

The two defendants, Axis Reinsurance Co. and Twin City Fire Insurance Co., issued excess errors and omissions policies to Maximus, and each insurer's policy provided $10 million in excess coverage that kicked in after damages exceeded $60 million and $70 million, respectively, the complaint says....
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