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Med Mal News
Hospital to Use D&O Insurance to Pay Families of Victims of Homicidal Nurse
Somerset Medical Center, a New Jersey facility where nurse Charles Cullen killed 13 patients, has won the right to tap a $15 million directors', officers' and trustees' liability insurance policy to fund its settlement with victims' families. The hospital settled with them for an undisclosed amount in 2008, but ran into difficulty when it tried to claim against its policy with Executive Risk Indemnity Inc. a unit of Chubb Insurance. On March 22, New Jersey's Appellate Division agreed with a Somerset County judge that the policy's bodily injury exclusion doesn't apply, since the underlying suits were based on the hospital's alleged negligence in hiring and supervising Cullen, not on his homicidal acts. Cullen admitted killing 29 people in New Jersey and Pennsylvania and trying to kill six others between 1988 and 2003, when he was arrested, while still employed at Somerset Medical. Most of his victims were old and sick and died as a result of intravenous overdoses of medication.
'Zone of Danger' Standard to Be Tested
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