American Specialty Health Inc. has filed a suit against Chubb Corp., the company that issued its subsidiaries’ managed care organization errors and omissions liability coverage.[@@]
American Specialty, San Diego, a company that has organized an alternative health insurance business, says in the suit, filed in the U.S. District Court in San Diego, that Chubb, Warren, N.J., has failed to pay claims related to a dispute with the California Chiropractic Association, Sacramento, Calif.
American Specialty has accused Chubb of false advertising and failing to act in good faith in the claim-handling process.
A Chubb spokesman declined to comment on the suit.