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...

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...

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...

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...