Cigna Can't Get Coverage For $140M Settlement: Pa. Court

Law360, Philadelphia (July 22, 2013, 1:25 PM EDT) -- The Pennsylvania Superior Court on Thursday absolved Cigna Corp.'s excess insurer of any obligation to indemnify the company for the $140 million in settlements to doctors' class action claims for violations of the Racketeer Influenced and Corrupt Organizations Act and breach of contract.

The appeals court upheld a 2010 trial court ruling favoring Executive Risk Indemnity Inc., in which a Philadelphia Court of Common Pleas judge found that the insured, not the insurer, must prove how settlement funds were allocated. The RICO claims were covered by...
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