Intact Unit Beats Engineering Firm Over ‘Rent-a-Vet’ Scheme

An Intact Financial Corp. insurance unit is off the hook for a settlement and legal costs incurred by an engineering firm after it learned of and disclosed potential violations of federal and state law following a merger.

The settlement with the federal government was an uninsurable loss that wasn’t covered by the directors and officers liability policies issued to IMEG Corp. by Atlantic Specialty Insurance Co., the US District Court for the Northern District of Illinois ruled in a Monday order. The court denied IMEG’s motion for judgment on the pleadings and granted Atlantic Specialty’s motion in part.

While the ...