Article Archives >> Lead Stories >> April 16-30, 2004
Preview of Article:
D & O Insurance Policy Does Not Cover
Investigation of Possible Billing Fraud
Inquiry does not fall within the definition of “claim”
and insurer is not required to provide a defense
Excerpt
An administrative investigation of possible Medicaid billing fraud is not within the definition of “claim” under a directors and officers liability insurance policy, the Supreme Court of Idaho has ruled. As a result, the insurer is not required to provide or pay for the defense. (Treasure Valley Transit v. Philadelphia Indemnity Insurance Company, No. 28854, 3/25/04.)