Steadfast Insurance Co. v. Caremark Rx, Inc.

Steadfast Insurance Company (Steadfast) appeals from an order of the circuit court denying its motion for restitution of costs it paid defending Caremark Rx, Inc., and Caremark, Inc., in two underlying federal actions. For the reasons that follow, we affirm in part, reverse in part, and remand the cause for further proceedings.

Caremark Rx, Inc., and its subsidiary, Caremark, Inc. (hereinafter collectively referred to as Caremark), administer prescription drug benefits for health plans throughout the country. In 2001, Steadfast issued a managed care professional liability policy to Caremark.…