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September 03, 2015 5:47 PM ET

Insurance

Company Overview of Federal Insurance Company

Company Overview

Federal Insurance Company provides property and casualty insurance. The company was founded in 1901 and is based in Warren, New Jersey. Federal Insurance Company operates as a subsidiary of The Chubb Corporation.

15 Mountainview Road

Warren, NJ 07061

United States

Founded in 1901

Phone:

908-903-2000

Fax:

908-903-2027

Key Executives for Federal Insurance Company

Federal Insurance Company does not have any Key Executives recorded.

Federal Insurance Company Key Developments

The Los Angeles Lakers Files A Lawsuit Against Federal Insurance Co. Alleging Breach of Contract

The Los Angeles Lakers filed a lawsuit against Federal Insurance Co. alleging breach of contract in connection with insurance coverage for an underlying class action against the team. The Lakers purchased a commercial liability policy from Federal that contains directors and officers liability coverage and corporate liability coverage. According to the lawsuit, an underlying class action accuses the Lakers of violating the Telephone Consumer Protection Act. The Lakers allegedly sent text messages in violation of federal law to customers and potential customers. The Lakers sought insurance coverage from Federal in the underlying case, which Federal denied on the ground that the policy's invasion of privacy exclusion bars coverage. The complaint alleges breach of contract and bad faith on the part of Federal.

The Sixth U.S. Circuit Court of Appeals Holds Federal Insurance Co. to Provide Indemnification Coverage

The Sixth U.S. Circuit Court of Appeals held an insurer was obligated to provide indemnification coverage under an insured's policy for the insured's settlement of an underlying antitrust suit. Federal Insurance Co. issued an insurance policy to William Beaumont Hospital. During the policy term, two registered nurses, neither of whom Beaumont employed, brought a class action against of eight Detroit-area hospital systems, including Beaumont. The nurses claimed the hospitals violated §1 of the Sherman Act by conspiring to depress the wages of the nurses and exchanging information regarding the compensation of the nurses, which had the effect of depressing their wages. The district court granted summary judgment in favor of the hospitals on the nurses' claim of a per se violation of §1 of the Sherman Act arising from the defendants' alleged conspiracy to depress nurse compensation levels. However, the court permitted the nurses to move forward on their §1 "rule of reason" claim that the defendants unlawfully agreed among themselves to share compensation information in a manner that harmed competition and depressed the nurses' wages. Beaumont timely requested coverage under the policy for the nurses' action. Federal, recognizing the action as an antitrust claim, as defined by the policy, consented to pay 80% of the covered antitrust loss. During settlement discussions with the nurses, Beaumont sued Federal, seeking a declaration that Federal was obligated to indemnify Beaumont. While the coverage action was pending, Beaumont settled with the nurses for approximately $11.3 million. Federal paid Beaumont 80% of the settlement, or approximately $9 million. The district court granted Beaumont's motion for judgment on the pleadings. Federal appealed, arguing it owed no duty to indemnify Beaumont under the terms of its policy. Insurer must provide coverage under explicit terms of policy. The Sixth Circuit affirmed the district court's judgment. Federal's principal argument was that the nurses' claims arose from Beaumont's gaining of profit, remuneration or advantage to which it was not entitled and the settlement was a disgorgement of that advantage. Federal argued the advantage gained was nursing services at below-market compensation and that settlement was clearly disgorgement of the value of that advantage. Consequently, under the policy, which expressly declined coverage of amounts constituting disgorgement, there was no coverage for what Beaumont's nurses received from the underlying suit. Based on the nurses' complaint, terms of the policy and principles of antitrust law, the Sixth Circuit found the settlement did not constitute disgorgement under the policy and was therefore covered. The Sixth Circuit also found Michigan public policy did not bar coverage of the settlement.

HDI-Gerling America Insurance Co. Files Lawsuit Against Federal Insurance Co

HDI-Gerling America Insurance Co. filed a lawsuit against Federal Insurance Co. seeking contribution for $242,000 paid in an underlying settlement. According to the lawsuit, HDI-Gerling provided commercial general liability insurance to Siemens Medical Solutions USA. Siemens acquired a radiation therapy treatment table top from Medtec Inc. to be used in a hospital. Medtec had liability insurance with Federal.

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