Penalties Exclusion Does Not Preclude Coverage, 5th Circuit Panel Says

Penalties Exclusion Does Not Preclude Coverage, 5th Circuit Panel Says

NEW ORLEANS - The Fifth Circuit U.S. Court of Appeal on May 15 affirmed a ruling that an insurer has a duty to defend its insured for costs related to alleged violations of the Clean Air Act (CAA) because the policy's fines and penalties exclusion does not preclude coverage for the injunctive relief imposed by the U.S. Environmental Protection Agency (Louisiana Generating LLC, et al., v. Illinois Union Insurance Co., Nos. 12-30651, 12-30877, 12-30879, 5th Cir.).

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