Insurers Win Appeals |In 6th & 4th Circuits

     (CN) – Two insurance companies won victories in separate federal appeals courts, where they challenged their liability in cases of professional misconduct. The 6th Circuit ruled that Scottsdale Insurance Co. is not required to cover a mental-health therapist who purportedly had a sexual liaison with a client, because the relationship was not within the therapist’s scope of employment. See Scottsdale v. Flowers.

     The 4th Circuit ruled in favor of General Star National Insurance in the company’s dispute with Horace Mann Insurace over which insurer was liable for a $1 million settlement between school officials and a high-school student who claimed to have been sexually abused by a teacher. See Horace Mann v. General Star.

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