Judge: Fact Issue Exists As To Whether Insured's CFO Anticipated SEC Claim

Judge: Fact Issue Exists As To Whether Insured's CFO Anticipated SEC Claim

SEATTLE - An excess directors and officers liability insurer fails to conclusively establish that its insured's former chief financial offer (CFO) anticipated a financial reporting fraud claim by the Securities and Exchange Commission before applying for insurance, a Washington federal judge found April 9, concluding that a fact issue as to whether the insurer was reasonable in denying coverage precludes summary judgment in favor of the insurer on two claims (Isilon Systems Inc. v. Twin City Fire Insurance Company,  No. 10-1392 MJP, W.D. Wash.; 2012 U.S. Dist. LEXIS 50320).

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