Valley Bancorporation v. Auto Owners Insurance Co.

Auto Owners Insurance Company appeals a judgment finding it liable under its umbrella policy to indemnify its insured, Valley Bancorporation, for a judgment obtained by Agri-Supply Cooperative, subsequently settled for $2.2 million. Auto Owners contends that the trial court erred by concluding that the evidence of covered risks of libel and slander was sufficiently intertwined with the uncovered claim of bad faith against the First National Bank to provide coverage for the resulting damages. Auto Owners contends that there was no coverage under its policy because the theory litigated and the…