Federal Court Scolds Insured for Frivolous Contest to Carrier's Entitlement to Payment

A federal appellate court scolded an insured for its frivolous defense during arbitration with its carrier and threatened to sanction the insured for its frivolous challenge to the arbitration award. Case: American Zurich Insurance Co. v. Sun Holdings Inc., No. 23-3134, 06/03/2024, published. Facts and procedural history: Sun Holdings Inc. purchased a workers’ compensation policy from American Zurich Insurance Co. The policy made American Zurich responsible for paying all approved claims in full. It also required Sun to reimburse American Zurich for the first $250,000 of eac...