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The U.S. Court of Appeals for the Third Circuit, affirming a decision by the U.S. District Court for the District of Delaware, has ruled that the “insured versus insured” exclusion in a management protection insurance policy barred coverage of a lawsuit brought by an insured corporation – a Chapter 11 debtor – against a former employee, even where the suit had been taken over by a Chapter 11 trustee.

The Case

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