Chattem PPA insurance dispute
This article was originally published in The Tan Sheet
Executive Summary
Kemper Indemnity Insurance is asking a Chattanooga federal court to rescind a $50 mil. excess product liability insurance policy issued to Chattem. In a July 31 lawsuit, Kemper alleges the Dexatrim marketer failed to disclose the preliminary results of the Hemorrhagic Stroke Project study on phenylpropanolamine during "the submission process to renew the Kemper policy for coverage for the Dec. 21, 1999 to May 31, 2001 policy period," Chattem says in an Aug. 13 press release. Alternatively, Kemper is seeking a declaratory judgment to bar or limit coverage of PPA claims. Chattem says the Kemper policy provides coverage "in excess of $23.5 mil. of product liability insurance" available from two other insurers. Chattem, which is a defendant in approximately 155 PPA suits related to its sale of Dexatrim, said the Kemper claims are meritless and it may file a counterclaim against the insurer for bad faith...
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