Wash. High Court Won't Let Insurers Recoup Defense Costs

Law360, New York (March 8, 2013, 2:26 PM EST) -- In a 5-4 ruling that could hit insurers hard, the Washington Supreme Court on Thursday forbid carriers from recouping money they shelled out to defend policyholders that were never owed coverage, siding with Amgen Corp. in a coverage battle with an Allianz Insurance Group company over price fixing and Medicare overbilling claims.

According to the majority, the decision takes away a win-win situation for insurers that are defending their policyholders as a precaution as they challenge coverage in court.

The five judges refused to let Allianz...
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