West American Sinks Appeal Over MRI Kickback Suit Coverage

Law360, Chicago (April 17, 2013, 6:58 PM EDT) -- An Illinois appeals court on Tuesday affirmed a ruling that said West American Insurance Co. owed no duty to defend or indemnify Midwest Open MRI Inc. in a lawsuit alleging it conspired to run a kickback-for-referral scheme and submitted false billing records to patients with third-party payors.

The court found that the underlying complaints brought by a Midwest rival did not contain allegations that brought the suit within the scope of the West American's policy, and that the insurer had no duty to defend the MRI...
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