Under Virginia Law, Despite the Separation of Insureds Provision, Insurer has No Duty to Defend Suit Alleging Insured is Liable Under Respondeat Superior for Intentional Acts of Agent

On July 10, 2015, the Fourth Circuit Court of Appeals held that an insurer had no duty to defend the insured university in a suit alleging that the insured participated in a kidnapping plot. The court found that the insurer had no duty to defend because the suit was based on the intentional acts of the insured’s employees.

In this case, the plaintiff alleged that the insured participated in a plot to kidnap the student in order to remove the student and keep her separated …

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