False Claims Act Investigation Is Covered Under Insured’s D&O Policy, Court Says
The Delaware Supreme Court affirmed a summary judgment ruling against ACE, finding that the professional services exclusion in ACE’s management liability insurance policy does not apply to bar coverage for a False Claims Act (FCA) investigation against Guaranteed Rate. This landmark case carries substantial precedential significance for policyholders facing FCA investigations and related qui tam lawsuits
The Delaware Supreme Court on Sept. 14 affirmed a summary judgment ruling against ACE (a Chubb unit), finding that the professional services exclusion in ACE’s management liability (D&O) insurance policy does not apply to bar coverage for a False Claims Act (FCA) investigation by the government against mortgage lender, Guaranteed Rate (GRI). This landmark case carries substantial precedential significance for policyholders across the nation facing False Claims Act investigations and related qui tam lawsuits, which are costly to defend and settle.
Keep Up to Date in a Changing World
