Judge:  Unreasonable For Insured To Expect Excess Coverage For Punitive Damages

Mealey's (June 15, 2021, 11:43 AM EDT) -- CHICAGO — A federal judge in Illinois on June 11 held that under Illinois law, it was not reasonable for a pharmaceutical corporation insured to expect excess insurance coverage for punitive damages that were imposed due to its negligence, granting the excess insurer’s motion for summary judgment in its declaratory judgment lawsuit disputing coverage for part of an underlying $20.5 million judgment arising from claims that the insured “knowingly and intentionally omitted information about the serious risk of bodily harm to patients who were prescribed both a serotonergic psychiatric medication and methylene blue.”...