Insurer Denied Fast Win In Allied Coverage Suit

Law360, Washington (October 4, 2011, 7:42 PM EDT) -- A Florida federal judge on Friday denied Philadelphia Indemnity Insurance Co.'s bid for a quick win in its suit against Allied Mortgage & Financial Corp. seeking to dodge professional liability coverage for investor actions, rejecting the insurer's reliance on a bankruptcy clause.

U.S. District Judge Adalberto Jordan declined to grant PIIC's bid for summary judgment on its claims that it does not owe Allied coverage for investors' negligent misrepresentation actions, in which PIIC argued that because the investors' claims arose out of Allied's insolvency, the insurer...
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