Markel Insurer Off the Hook for Vulnerable Person Abuse Suit

A Markel Group Inc. insurance unit can avoid covering a policyholder that made a material misrepresentation in its renewal application, a federal appeals court ruled.

Evanston Insurance Co. refused to defend or indemnify a psychological services provider in a vulnerable person abuse suit, arguing that provisions in the policy barred coverage because the policyholder had knowledge of circumstances that led to the claim. Additionally, the insurer alleged that Footprints Behavioral Interventions Inc. had provided false answers on its renewal application to questions about malpractice and employees’ prior convictions.

The US Court of Appeals for the Ninth Circuit sided with Evanston, ...