Federal Judge Allows Insurer To Advance Defense Costs In Suit Brought By SEC

ST. LOUIS - Proceeds of a Venture Capital Asset Protection Policy are not part of a receivership estate, and the insurer is not barred from disbursing insurance proceeds to pay defense costs in a lawsuit in which the Securities and Exchange Commission alleged misappropriation of $9 million in investments...

Magistrate Refuses To Allow Early Discovery In Directors, Officers Coverage Suit

SIOUX CITY, Iowa - An Iowa federal magistrate judge on July 11 denied a motion by the Federal Deposit Insurance Corp., as receiver of an insured bank, for early discovery in a directors and officers coverage dispute ( Progressive Casualty Insurance Company v. Federal Deposit Insurance Corporation, et...

Magistrate Allows Insurers To Amend Complaint In Directors, Officers Coverage Dispute

FRESNO, Calif. - A California federal magistrate judge on Nov. 15 granted insurers' motion to amend their complaint in their declaratory judgment lawsuit disputing directors and officers coverage ( Allied World National Assurance Company, et al., Plaintiffs, v. SK PM Corp., et al., No.: 1:10-cv-01262...

Federal Judge Refuses To Dismiss Directors, Officers Coverage Dispute

SACRAMENTO, Calif. - A directors and officers liability insurer has adequately stated a claim for a declaratory judgment action, a California federal judge ruled Dec. 6, refusing to dismiss or stay the lawsuit that challenges coverage for a $23 million loss allegedly caused by an insured bank's directors...

N.Y. Justice Denies Insurer's Motion In Suit Seeking $4.6M In Defense Costs

NEW YORK - A New York justice on Dec. 6 rejected an insurer's argument that two underlying actions against nonprofit insureds are precluded from directors and officers liability coverage because of a professional services exclusion, denying the insurer's motion for summary judgment in a coverage...

9th Circuit: State Law Contract Claims Not Barred By Federal Securities Law

PASADENA, Calif. - A group of putative class representatives' claims for bad faith and breach of contract related to their life insurance provider are not barred by the Securities Litigation and Uniform Standards Act (SLUSA) because they "did not rest on misrepresentation or fraudulent omissions...

Minnesota Panel Reverses Ruling On Interest Owed To Directors, Officers Insurer

ST. PAUL, Minn. - A Minnesota appeals panel on Jan. 14 affirmed a lower court's ruling that coverage for an underlying Consumer Fraud Act (CFA) claim against a loan provider insured is barred. The panel, however, reversed in part, finding that the insured is indebted for some interest on the approximately...

1st Circuit: AIG Must Cover Failed Bank Executives' Claims

BOSTON - The First Circuit U.S. Court of Appeals on March 20 ruled that AIG Insurance Co. - Puerto Rico (AIG) must pay attorney fees and costs incurred by the directors and officers of the failed Westernbank Puerto Rico in a $176 million coverage suit, upholding a district court's order (W Holding...

Judge Dismisses Claims From Former Bank Directors' Insurance-Coverage Suit

FRESNO, Calif. - A federal judge in California on March 26 dismissed the reformation and punitive damages claims from a suit in which the former directors of the failed County Bank sued Bancinsure Inc. after it denied them coverage of a Federal Deposit Insurance Corp. suit (Thomas T. Hawker, et al. v...

Federal Judge Dismisses Insurer's Suit Disputing Coverage For FDIC's Claims

GAINESVILLE, Ga. - A management and professional liability insurer's declaratory judgment claim is barred by Section 1821(j) of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), a Georgia federal judge ruled March 28, dismissing the insurer's lawsuit challenging...

Texas Panel Reverses Ruling In Favor Of Directors, Officers Liability Insurers

HOUSTON - A Texas appeals panel on July 16 found that an endorsement in primary and excess directors and officers liability insurance policies precludes insurers from denying coverage for underlying lawsuits arising from a fraudulent investment scheme involving thoroughbred breeding mare leases, reversing...

11th Circuit Rejects Cross-Appeal In Bank Insurance Coverage Case

ATLANTA - The 11th Circuit U.S. Court of Appeals on Jan. 7 dismissed St. Paul Mercury Insurance Co.'s cross-appeal in a dispute regarding whether it has to cover suits brought by the Federal Deposit Insurance Corp. against a failed bank's directors and officers, determining that St. Paul does...