Federal Insurance Owes $6M In Housing Bias Suit Coverage

Law360, New York (September 25, 2012, 1:50 PM EDT) -- A California appeals court ruled Monday that excess and umbrella insurance carrier Federal Insurance Co. must cover $6 million in defense costs incurred by another insurer in connection with a U.S. Department of Justice housing discrimination suit.

The Court of Appeal affirmed a lower court judgment finding that because Federal issued an excess policy specifically covering claims of discrimination while primary insurers Steadfast Insurance Co. and Liberty Surplus Insurance Co. did not, Federal is on the hook for costs in a 2006 DOJ suit accusing the...
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