Novant ‘unjustly enriched itself’ off employee retirement plans, insurer says
The claims are in a filing by
The D.L. Davis contract also benefited Novant and certain executives, Chubb alleged in its filing.
Dating at least to the 1990s, Novant and the executives forged business ties with real estate investor and broker
In its lawsuit, Novant said D.L. Davis received a monthly fee of
Novant's suit says the retirement plan did not always have sufficient funds to cover fees as they came due each month. Rather than force plan participants to pay vendor fees as monthly reductions from their retirement accounts, Novant said it instead paid the vendors and received reimbursement from the plan for exactly the same amount: "Novant received no financial benefit from this arrangement."
Chubb disagrees.
"Novant did not merely extract from the plan an amount of money representative of services provided on behalf of Novant to plan participants; rather, Novant took excessive amounts to which it had no legal entitlement," the insurer says in its filing.
Novant received an "ill-gotten gain" that does not qualify as a loss under its insurance policy, Chubb said, adding, Novant "took money that belonged to the plan and unjustly enriched itself."
The health system's June suit also accuses
Both insurers are seeking to have Novant's lawsuit dismissed.
In a statement Wednesday, Novant said it initiated the suit because the insurers "did not honor their obligations to pay under liability insurance purchased by
"The insurers' claims are simply untrue," the health system said.
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