Chubb Policyholder Sues Over Legal Bills

Chubb Corp., the second-largest seller of liability insurance for U.S. executives and directors, was accused in a lawsuit of refusing to pay the legal bills of a healthcare benefits provider that was sued by chiropractors.

In a suit filed in federal court in San Diego, American Specialty Health Inc., which held an errors-and-omissions policy sold by a Chubb unit, contends that Chubb failed to defend it in a suit filed by the California Chiropractic Assn.

Shares of Chubb fell 57 cents to $78.98 on the NYSE.