Article Archives >> Lead Stories >> October 16-31, 2009
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Insurer Breached Contract
In Refusing to Defend Claims
Insured’s bad faith complaint
is precluded by statute of limitations
When two adherents of The Way International sued the organization in 2002 complaining that they had been improperly indoctrinated to gain control over their lives and money, The Way tendered the claim to Executive Risk Indemnity, its directors’ and officers’ insurance carrier, but the carrier declined to provide a defense. The carrier said the claims were excluded under a provision excluding claims arising out of mental anguish or emotional distress.
A federal District Court in Ohio has recently held that the carrier was wrong in refusing to provide a defense, but has also held that the insured’s claim for bad faith refusal to defend was barred by the statute of limitations.
Article Archives >> Lead Stories >> October 16-31, 2009
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