A federal district court, applying Indiana law, has held that a sublimit for regulatory claims applied, despite grammatical errors in the policy’s language. HealthtrackRX Indiana, Inc. v. RSUI Indem. Co., 2026 WL 1188702 (E.D. Tex. Apr. 29, 2026).
The insured, a provider of infectious-disease laboratory testing, was subject to significant regulatory oversight. It received two regulatory claims and sought coverage under its insurance policy. The insurer agreed to fund the defense, but asserted that coverage was subject to both a self‑insured retention and an aggregate sublimit of liability for “Regulatory Claims.” The insured filed suit, seeking a declaratory judgment that its defense costs were not subject to either the retention or the sublimit.
