TeamHealth claims that Ironshore ultimately denied coverage for the settlement, but based the denial on what it called a “self-serving interpretation of notice and consent provisions despite contrary facts, law, and logic.”
Attorneys for TeamHealth argue that the underlying suit was filed under seal and that it did not receive a copy of the filed complaint until September 2018, and that’s when it says it notified its insurers.
However, TeamHealth did say that their company did receive a civil information demand related to the underlying suit in October 2016, which it forwarded to AIG and Ironshore. TeamHealth says this constituted “sufficient notice under the Ironshore policy.”
According to the TeamHealth complaint, the overbilling allegations in the underlying lawsuit “fell within the scope of coverage provided by the AIG policy and followed by the Ironshore policy.”
According to documents from the underlying suit, TeamHealth settled the action in July 2021 for $42.5 million.
In the complaint, TeamHealth says that AIG paid the full limits of its policy, but Ironshore “continued to stonewall TeamHealth” and refused to engage in settlement negotiations.
