The Delaware Superior Court has ruled that Federal Insurance Company must pay a company's defense costs for wrongs committed by a subsidiary under a directors and officers liability policy it issued.
A decision in the case HLTH Corporation and Emdeon Practice Services Inc. v. Federal Insurance Company et. al was delivered earlier this month.
Federal, the court said, must pay defense costs on behalf of HLTH Corporation to the full policy limits against a criminal indictment alleging wrongful acts over an extended period involving a subsidiary acquired after a number of the alleged acts had taken place.
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