A Philadelphia judge has ruled that Cigna Corp. is not entitled to indemnity for any of the $140 million it agreed to pay to settle a class action eight years ago because it intentionally failed to apportion the payments between RICO claims, which were covered by its professional liability insurance policy, and breach of contract claims, which were not.
In a case of first impression for Pennsylvania courts, Philadelphia Common Pleas Court Judge Mark I. Bernstein ruled that the insured, not the insurer, bears the burden of proof on the issue of how settlement funds were allocated.
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