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Wednesday, April 22, 2015

Ind. Decisions - Supreme Court decides decade-old Anthem litigation, "in large part" in Anthem's favor

In WellPoint, Inc. (f/k/a Anthem, Inc.) and Anthem Insurance Companies, Inc. v. National Union Fire Insurance Co. of Pittsburgh, PA, AIG Europe (U.K.) limited, New Hampshire Insurance Co. et al., a 17-page opinion, Justice Dickson writes:

Anthem, Inc. is a large managed health care organization. At all times relevant to this lit-igation, it was self-insured for errors and omissions (E&O) liability and had purchased policies from other insurers to reinsure its E&O liabilities. After Anthem settled certain multi-district lit-igation without admitting liability, it sought indemnification from its reinsurers, some of which denied coverage and successfully sought summary judgment. We reverse the trial court and in large part grant summary judgment for Anthem. * * *

We hold as a matter of law that Anthem's losses resulted from alleged wrongful acts that occurred solely in the rendering or failure to render Professional Services and thus fall within the Policy's insuring agreement; that the relief Anthem seeks is insurable under the Policy and Indiana law; and that, with respect to Anthem's settlement losses resulting from Shane, Thomas, and Levinson, the exception to Exclusion (b) obviates its application. Anthem is entitled to the coverage, including coverage for defense costs, under Coverage II of its policies with the Excess Reinsurers, except for its settlement losses resulting from CSMS's claims. We reverse and, except for Anthem's losses resulting from CSMS's claims and Anthem's bad faith claim, enter summary judgment in favor of Anthem for its costs of settling the Underlying Litigation and remand to the trial court for further pro-ceedings consistent with this opinion.

Rush, C.J., and David and Massa, JJ., concur.
Rucker, J., concurs in result.

Posted by Marcia Oddi on April 22, 2015 02:54 PM
Posted to Ind. Sup.Ct. Decisions