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Exclusions Professional Liability

Wiley Rein LLP

“Theft of Funds” Exclusion Precludes Coverage Where All Underlying Claims “Arose Out of” Theft

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The United States District Court for the Southern District of Florida, applying Florida law, has held that a policy’s “theft of funds exclusion” precluded coverage for an insured law firm under its professional liability...more

Wiley Rein LLP

Ohio Court Rules that “Frivolous Conduct” Exclusion Precludes Duty to Defend

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The Ohio Court of Appeals has affirmed that a professional liability insurer owed no duty to defend claims against attorneys and their law firm that accused the attorneys of filing “frivolous” lawsuits under the Individuals...more

Wiley Rein LLP

Prior Knowledge Provisions Barred Coverage for Malpractice Claim Based on Pre-Policy Sanctions and Default Judgment

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The Montana Supreme Court has held that there was no coverage under a lawyers professional liability policy for a client’s malpractice claim because the lawyer knew of and failed to disclose, prior to the insured law firm’s...more

King & Spalding

Avoid the “Insolvency Exclusion” Trap in E&O Policies: Tennessee Federal Court Confirms That Insolvency Exclusion Does Not Apply...

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As the wave of litigation spawned by the 2008 financial crisis begins to ebb, insurance-coverage litigation arising out of the credit crisis continues unabated. Financial institutions have successfully pursued insurance...more

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