Dishonest Act Exclusion Does Not Bar Coverage, 9th Circuit Rules In Partial Reversal

Mealey's (April 1, 2022, 1:12 PM EDT) -- SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on March 30 affirmed a lower federal court’s ruling that a professional liability insurance policy’s claims services exclusion barred coverage but reversed the court’s conclusion that the dishonest act exclusion barred coverage,  finding that the insurer is not entitled to reimbursement for the $605,569 it paid to defend an underlying arbitration dispute....