Mealey's Banking & Finance - Judge: No Professional Liability Coverage For FDIC's Claims Against Bank Directors

FRESNO, Calif. - An exclusion in an extended professional liability policy (ELP) bars coverage for claims the Federal Deposit Insurance Corp. brought against former directors of a failed bank in its capacity as a receiver, a California federal magistrate ruled April 7, granting the insurer's motion for summary judgment (Thomas T. Hawker, et al., Plaintiffs, v. BancInsurance Inc., et al., No. 1:12-cv-01261-SAB, E.D. Calif.; 2014 U.S. Dist. LEXIS 48649).

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