A mortgage lender accused of violating the False Claims Act by approving government-backed loans that did not meet federal guidelines can seek to recover the $15 million it paid to resolve the allegations from its management liability insurer, the Delaware Supreme Court ruled Thursday.
Lilit Asadourian
The high court rejected arguments by Chubb Group’s Ace American Insurance Co. that Guaranteed Rate Inc.’s settlement with the US Justice Department was not covered because the violations involved professional services excluded from the management liability policy. In a 3-0 decision, the court affirmed a Superior Court judgment that found Ac