Endurance Must Cover NovaStar Lending Suit: Judge

Law360, New York (August 2, 2011, 2:39 PM EDT) -- A federal judge in Washington ruled Monday that Endurance American Specialty Insurance Co. was obligated to cover NovaStar Financial Inc. in a suit alleging NovaStar’s mortgage underwriting policies were discriminatory.

U.S. District Judge James Boasberg said NovaStar was entitled to defense and indemnity costs because the underlying suit took place during the Endurance policy period and was unrelated to a similar matter that occurred prior to the policy.

Before entering into a policy with Endurance, NovaStar was served with an administrative complaint by the U.S. Department...
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