Chubb Must Cover Grange For Fraud Actions

Law360, New York (September 30, 2011, 7:30 PM EDT) -- An Ohio federal judge ruled Thursday that Chubb Custom Insurance Co. must pay policyholder Grange Mutual Casualty Co. for legal costs stemming from class actions that accused it and other insurers of conspiring to defraud clients by using a software program to underpay claims.

In denying Chubb's summary judgment motion and granting Grange's own, U.S. District Judge George C. Smith rejected Chubb's argument that it should not have to indemnify Grange because the class actions stemmed from a business strategy aimed at saving Grange money. Chubb...
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