TaxMasters CEO Says Insurers Should Cover $46M Suit

Law360, New York (May 7, 2012, 2:06 PM EDT) -- The former CEO of defunct TaxMasters Inc. sued its insurers Thursday in Texas for refusing to cover the cost of lawsuits alleging TaxMasters violated consumer protection laws, including one that led to a verdict of $46 million against the CEO.

Patrick Cox's suit, filed in the District Court of Harris County, Texas, claims that CNA Insurance Cos., Continental Casualty Co. and American Casualty Co. of Reading, Penn., breached insurance policies by refusing to pay.

The suit also accuses Insurance Alliance and James W. Tomforde, insurance agents...
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