Insurer Has No Duty To Defend Claim Stemming From IRS Demand, N.J. Panel Affirms

Insurer Has No Duty To Defend Claim Stemming From IRS Demand, N.J. Panel Affirms

TRENTON, N.J. - Insureds had no reasonable expectation of coverage under their claims-made liability insurance policy for a claim brought by the Internal Revenue Service because the only exposure suffered by the insureds was a fine, penalty or tax, a New Jersey appeals panel ruled Nov. 15, affirming a lower court's ruling in favor of the insurer (William B. Kessler Memorial Hospital, Inc., et al. v. North River Insurance Co., et al., No. A-2201-12T3, N.J. Super., App. Div.; 2013 N.J. Super. Unpub. LEXIS 2756).

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