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Analysis

AIG, Office Depot Case May Limit Coverage In Fraud Cases

Law360, New York (October 13, 2017, 7:39 PM EDT) -- AIG has asked the Ninth Circuit to affirm that a California law precluding coverage for willful acts means Office Depot can’t be indemnified for defense and possible settlement costs in a suit alleging it overbilled public agencies, and attorneys say a decision in favor of the insurer could lead to widespread coverage denials for fraud-based claims.

Office Depot is challenging U.S. District Judge Stephen V. Wilson's ruling accepting AIG Specialty Insurance Co.'s argument that California Insurance Code Section 533 — which precludes coverage for a policyholder's willful acts — applies to the entire underlying California False Claims Act action against the office supply...

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