RSUI Blames Insurers For Runaway Katrina Litigation Costs

Law360, New York (June 5, 2012, 1:25 PM EDT) -- RSUI Indemnity Co. told a Georgia federal court Monday it should not have to compensate Allstate Insurance Co., State Farm Fire and Casualty Co. and Nationwide Mutual Insurance Co. for the $8.5 million defense of a class action over reinsurance liability after Hurricane Katrina because the insurers incurred the costs carelessly and without consent.

The insurers and certain of their employees violated the RSUI policy by not seeking consent, hired expensive and unnecessary lawyers and are seeking broader insurance coverage than RSUI agreed to provide, RSUI...
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