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Chubb unit must defend debt-relief firm in consumer protection suit - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Chubb unit must defend debt-relief firm in consumer protection suit by Richard Sine Coverage Disputes , P/C Insurers Chubb Sep 18, 2026 A unit of Chubb must help defend three founders of a debt-relief company against a federal consumer-protection lawsuit, a judge ruled, after finding at least part of the underlying case isn’t excluded from their management liability coverage. The decision, in Behar v. Federal Insurance Company , was issued Wednesday by the U.S. District Court for the District of Delaware. Plaintiffs Ian Behar, Daniel Blumkin and Ryan Sasson are principals of Strategic Financial Solutions, a debt-relief firm based in New York. In 2024, the Consumer Financial Protection Bureau and seven state attorneys general sued the company and its founders in the Western District of New York, alleging the company illegally collected more than $100 million in advance fees from consumers seeking debt relief. New York forbids charging fees before a consumer’s debts have been settled. The bureau contended that the firm offered “little, if any, debt-relief services.” That case is still pending. Mr. Behar, Mr. Blumkin and Mr. Sasson sued Federal, San Antonio-based Argonaut Insurance and Alleghany subsidiary RSUI Indemnity, seeking a ruling that the insurers must defend them in that case. The insurers argued a professional services exclusion barred coverage entirely. The judge disagreed, adopting a February report by a magistrate judge that found at least one claim in the suit, over allegedly false and deceptive statements, falls outside that exclusion, triggering a duty to defend. The judge also let a bad-faith claim against Federal proceed, ruling that whether the insurer had a reasonable basis for denying coverage cannot be resolved at the pleadings stage. 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