News & Analysis as of

Denial of Insurance Coverage D&O Insurance Insurance Claims

Wiley Rein LLP

Tenth Circuit Deems D&O Policy Ambiguous Based on Interplay of Coverage Grant with Managed Care Exclusion

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The United States Court of Appeals for the Tenth Circuit, applying Kansas law, has held that a D&O insurer was obligated to reimburse defense costs where a policy expressly covered antitrust claims but excluded coverage for...more

Wiley Rein LLP

Antitrust Exclusion Applies to Claims for Unjust Enrichment and Violation of Consumer Protection Laws

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Applying California law, the United States District Court for the Eastern District of California has held that an antitrust exclusion in a D&O policy bars coverage for lawsuits alleging violation of antitrust laws, violation...more

Lowenstein Sandler LLP

Wearing Multiple Hats: Making Sure You Are Covered in All Capacities

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Today on Don't Take No for an Answer, Lynda A. Bennett and Eric Jesse discuss what happens under D&O policies when an executive wears multiple hats—or, as it’s known in the insurance industry— acts in more than one capacity,...more

Lowenstein Sandler LLP

A Cautionary Tale Highlights the Importance of Carefully Reviewing a Warranty Letter Before Signing

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When buying an insurance policy, a policyholder is sometimes required to sign a warranty letter affirming that they are not aware of any impending claims nor any facts or circumstances that may reasonably give rise to a...more

Carlton Fields

NY Federal Court Finds “Insured v. Insured” Exclusion in D&O Policy Trumps General Allocation Clause

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On December 9, 2022, the U.S. District Court for the Southern District of New York considered whether an “insured v. insured” (IvI) exclusion applied to bar coverage for an underlying lawsuit brought against insureds under a...more

Jenner & Block

Seventh Circuit Decision Sends Warning to "Claims Made" D&O Insurance Policyholders

Jenner & Block on

The U.S. Court of Appeals for the Seventh Circuit in Hanover Ins. Co. v. R.W. Dunteman Co., 2022 WL 13769371, --- F.4th --- (7th Cir. Oct. 24, 2022), recently interpreted Illinois law on the aggregation provisions in a claims...more

Cozen O'Connor

Seventh Circuit Affirms Ruling that Notice of an Amended Complaint was Untimely

Cozen O'Connor on

On October 24, 2022, the U.S. Court of Appeals for the Seventh Circuit, in Hanover Ins. Co. v. R.W. Dunteman Co., 2022 WL 13769371, --- F.4th --- (7th Cir. Oct. 24, 2022) (applying Illinois law), affirmed a district court’s...more

Jones Day

Ninth Circuit Rejects Insurer's Attempt to Apply D&O Policy's "Insured vs. Insured" Exclusion to Defeat Coverage

Jones Day on

The Ninth Circuit recently affirmed a lower court's ruling that a Directors and Officers Liability ("D&O") insurer had a duty to defend against a lawsuit brought by investors in an insured's commercial development project. In...more

Wiley Rein LLP

Insured v. Insured Exclusion Bars Coverage For Entirety of Suit Brought By Insureds and Non-Insureds

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The United States District Court for the District of Utah, applying Utah law, has held that an insured v. insured exclusion barred coverage for the entirety of a “mixed” action brought by both insured and non-insured...more

Lowenstein Sandler LLP

In the Know: The Lowenstein Insurance Recovery Group’s Tip of the Month - October 2021

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A recent coverage case from Illinois is a helpful reminder to policyholders that they should not take no for an answer when insurers deny a claim based on uninsurability, restitution, disgorgement, or fraud. In fact, those...more

Wiley Rein LLP

Court Declines to Recognize Scrivener’s Errors in D&O Policy’s Capacity Exclusion

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The United States District Court for the Southern District of New York, applying Georgia law, has declined to recognize certain punctuation and spacing errors in the capacity exclusion of a directors and officers liability...more

Farella Braun + Martel LLP

In Verizon Decision Careful Review of Insurance Policies Expands Coverage

In Verizon Communications Inc. v. National Union Fire Insurance Co. of Pittsburgh, Pa. the Delaware Superior Court ruled that Verizon was entitled to a defense under its D&O policy for fraudulent transfer claims. Although the...more

Farella Braun + Martel LLP

“Unfair Trade Practices” Exclusion Does Not Extend to Consumer Protection Claims

Two phrases combined in a single exclusion—“alleging, arising out of, based upon or attributable to any violation of any law…” and “as respects… unfair trade practices” could inspire carriers to make trouble for policyholders...more

Goodwin

Delaware Supreme Court Holds Appraisal Action Is Not “Securities Claim” Covered By D+O Insurance Policy

Goodwin on

Delaware Supreme Court Holds Appraisal Action is Not “Securities Claim” Covered by D&O Insurance Policy; Delaware Supreme Court Affirms Dismissal of Derivative Claims Against Life Sciences Company For Failure to Plead Demand...more

Wiley Rein LLP

Delaware Supreme Court Holds that Appraisal Proceeding is not a “Securities Claim”

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Reversing the trial court, the Delaware Supreme Court has held that an appraisal proceeding does not constitute a “Securities Claim” under a D&O policy.  In re Solera Insurance Coverage Appeals, Nos. 413,2019 and 418,2019...more

Wiley Rein LLP

Excess E&O Insurer Must Reimburse Defense Expenses Pending Resolution of Insured’s Coverage Dispute with Primary D&O Insurer

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The United States District Court for the District of Kansas, applying Kansas law, has held that an excess E&O insurer was required to advance defense costs where coverage under a potentially responsive D&O policy had not yet...more

JAMS

[PODCAST] Resolving Business Interruption Disputes Caused by the Coronavirus (COVID-19)

JAMS on

Business interruption is on the minds of many, especially now as the COVID-19 pandemic has created unprecedented legal and business challenges. In this new podcast from JAMS, two well-respected neutrals with extensive...more

Bowditch & Dewey

Extending Liability Coverage By Providing Notice of Circumstances

Bowditch & Dewey on

Litigation concerning COVID-19 has already begun. A number of lawsuits have been filed against cruise lines alleging that they were negligent by operating with infected passengers and crew members and failing to screen...more

Carlton Fields

Is Your “Securities Claim” Actually Covered Under Your D&O Policy? A Review of In Re Verizon Insurance Coverage Appeals

Carlton Fields on

The question of what constitutes a “securities claim” in the context of public company D&O policies is often debated in insurance coverage disputes, and the answer to this question can have significant effects on the scope of...more

Carlton Fields

Look No Further Than the Insuring Clause: Ill-Gotten Gains Do Not Constitute Covered “Loss”

Carlton Fields on

On August 26, 2019, the Eleventh Circuit Court of Appeals, applying Florida Law, held that ill-gotten gains do not constitute covered “loss” within the meaning of a D&O policy. In Philadelphia Indemnity Insurance Co. v. Sabal...more

Carlton Fields

Beware Of The Warranty – Second Circuit Relies On Terms Of Warranty, Not Policy, To Make Coverage Determination

Carlton Fields on

Can the terms of a warranty impact the scope of coverage provided by an insurance policy even if the policy does not explicitly incorporate the terms of the warranty? The answer to this question appears to be yes, at least...more

Bradley Arant Boult Cummings LLP

Beware of Prior Act Exclusions and Retroactive Dates When Procuring or Renewing Coverage

An 11th Circuit decision issued earlier this year serves as a reminder of the importance of carefully evaluating time-based exclusions and retroactive dates when procuring or renewing coverage. Liability policies such as...more

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