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Article

Wiley Rein LLP | USA | 23 Feb 2009

Insurance agents’ referral of clients to debt adjustment services company constitutes professional services

The Kansas Supreme Court, reversing a lower court ruling granting summary judgment in favor of two professional liability carriers, has rejected the insurers’ arguments that they were relieved of their duty to defend because the claimants’ allegations: (1) did not allege a 'wrongful act'; (2) did not arise out of the 'conduct of the business of the ‘insuring agent’ in rendering service for others'; and (3) were barred by the dishonesty exclusion and an exclusion barring coverage for claims arising out of or in connection with a 'fraudulent or nonexistent entity.

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