No, the insurance company will most likely NOT be

No, the insurance company will most likely NOT be able to go after NSF, as the contract most likely indemnifies NSF against misdeeds by Amarex before they were bought. Insurance companies don't sue those who they insure. That's the whole POINT of insurance. But willful misconduct and gross negligence usually void insurance in a case like this. It is up to the arbitrator who will have ALL of the information to decide if those were factors here.