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Insurance companies not liable for fraudulent pension sales, court rules.

Publication: Business Insurance
Publication Date: 11-AUG-03
Format: Online - approximately 631 words
Delivery: Immediate Online Access
Full Article Title: Insurance companies not liable for fraudulent pension sales, court rules.(International)(Lloyds TSB General Insurance Holdings Ltd. and others vs. Lloyds Bank Group Insurance Co. Ltd.)

Article Excerpt
Byline: CAROLYN ALDRED

LONDON-Pension companies cannot aggregate the settlements of negligence claims against them related to the pension sales scandals of the late 1980s and 1990s, the United Kingdom's highest court has ruled.

The House of Lords ruling means that the pension companies involved will have to retain the cost of multiple settlements, rather than a single retention for a large claim that would trigger their professional liability coverage.

The ruling, Lloyds TSB General Insurance Holdings Ltd. and others vs. Lloyds Bank Group Insurance Co. Ltd., is expected to influence the wording of...

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