Cedars-Sinai Sues Lloyd's Over CT Scan Class Suit Coverage

By Matthew Heller (August 20, 2013, 3:28 PM EDT) -- Cedars-Sinai Medical Center in Los Angeles filed an insurance coverage lawsuit Monday alleging Certain Underwriters At Lloyd's London wrongly failed to indemnify the hospital for legal costs it incurred in defending a medical malpractice class action over its use of CT brain scans.

Cedars said the terms of two professional liability policies it obtained from Lloyd's provided that it pay only a "single retention," or deductible, of $3 million for losses resulting from the faulty administration of brain perfusion scans to stroke victims during an 18-month period. A class action complaint filed in 2009 alleged the scans delivered eight times the...

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