Cigna Beats Excess Insurers on Coverage for DOJ Investigation

A 2016 civil investigative demand made to Cigna Group by the US Department of Justice over potential False Claims Act violations counts as a covered “claim” under excess insurance policies, a Delaware state court ruled.

Additional review of the expenses Cigna incurred responding to the demand is necessary to determine how much the insurers, including an AXA SA unit, will have to pay, Delaware Superior Court Judge Sheldon K. Rennie said in an order unsealed Monday.

The DOJ’s 2016 demand was part of enforcement efforts against Medicare Advantage Organizations such as Cigna. The health insurance giant in 2023 agreed to ...