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Fourth Circuit: “Bump-Up” Exclusion Applies When Settlement Seeks to Cure Harms Associated with Undisclosed Conflict of Interest...

The United States Court of Appeals for the Fourth Circuit, applying Virginia law, has affirmed a district court’s ruling that a “bump-up” provision in a D&O policy applied to bar indemnity coverage for the settlement of...more

Court Holds that Ambiguity of One Endorsement Did Not Mean That Similar Endorsement Must Also Be Ambiguous

The United States District Court for the Northern District of California, applying California law, has held that a retroactive date endorsement limited coverage to $1 million if a claim involved wrongful acts occurring prior...more

Exclusion for Disclosure of “Confidential or Personal Information” Bars Coverage for BIPA Claim Involving Collection and...

The United States Court of Appeals for the Seventh Circuit, applying Illinois law, has held that an exclusion for claims arising out of any access to or disclosure of any person’s “confidential or personal information” bars...more

Bump-Up Provision Bars Coverage for Settlement of Post-Merger Claims by Shareholders of Target Company

On remand from the U.S. Court of Appeals for the Fourth Circuit, the U.S. District Court for the Eastern District of Virginia, applying Virginia law, has held that a bump-up provision in directors and officers liability...more

Late Notice Bars Coverage Under Claims-Made-and-Reported Policy for Claim Noticed to Insurer After Policy Period Expired

The North Carolina Court of Appeals has held that there is no coverage for a claim the insured knew about in July 2019 but failed to report to the insurer until November 2020 — after the expiration of the policy period....more

D&O Policy’s Professional Services Exclusion Does not Bar Coverage for False Claims Act Settlement

The Delaware Supreme Court has held that a professional services exclusion in a D&O policy does not bar coverage for a False Claims Act settlement. In 2017, a former employee of the insured mortgage loan company brought a...more

Mississippi Federal District Court Requires Insurer to Establish Prejudice to Deny Coverage Based on Untimely Notice

The United States District Court for the Southern District of Mississippi, applying Mississippi law, has held that noncompliance with a 30-day notice provision in an asset protection policy does not bar coverage unless the...more

Utah Federal Court Holds That Malpractice Claim “Resulting From” Sanctions on Insured Law Firm Seeks “Damages”

A Utah federal district court, applying Utah law, has held that a malpractice action “resulting from” or “incident to” a court’s decision to assess sanctions on an insured law firm for its violation of a discovery rule...more

Insurer Can Rely on Prior Insurance Applications in Support of Rescission Claim Based on Omission in Current Policy’s Application

An Illinois federal district court, applying Illinois law, has held that an insurer adequately stated a claim for rescission of a professional services policy where underlying litigation revealed that the insured allegedly...more

Capacity Exclusion Does Not Bar Coverage for Claims for Misconduct Allegedly Motivated By Outside Capacity

A California federal district court has held that a capacity exclusion in a D&O policy did not bar coverage for a claim against insured executives alleged to have taken actions for the benefit of another company because they...more

Sexual Misconduct Sublimit Applies to Negligence Claims Against Employer Where Claims Would Not Exist “But For” Employee’s Sexual...

The Eastern District of Pennsylvania, applying Pennsylvania law, has held that a healthcare professional liability policy’s sexual abuse/misconduct sublimit applied to claims of negligent hiring and supervision against the...more

South Dakota Supreme Court Holds That Liquidator Can Make Claims for Coverage Up to Six Months After Expiration of Claims-Made...

The Supreme Court of South Dakota has held that a state insurance liquidator’s notice of a claim first made and reported four months after the insolvent insurer’s claims-made policy period had ended was within the policy’s...more

No Coverage for Claim That “Correlates” to Claim Made Before Policy Period

The United States Court of Appeals for the Eleventh Circuit has held that, under Florida law, no coverage was available under a claims-made policy for a claim that “correlates” to a claim made before the policy period....more

Deceptive Advertising Claim Does Not Allege “Covered Professional Service”

Applying Georgia law, the U.S. Court of Appeals for the Eleventh Circuit has held that an E&O policy issued to a medical practice did not respond to a claim alleging violations of a state unfair and deceptive trade practices...more

Third-Party Wire Fraud Triggers Conversion Exclusion Under Professional Liability Policy, Despite No Direct Insured Involvement in...

Applying New Jersey law, the United States District Court for the District of New Jersey has held that a conversion exclusion bars coverage under a professional liability policy for multiple claims against an insured title...more

“Securities Claim” Exclusion Applied Where Notes Constituted a “Security” as Defined by the Securities Acts

The United States District Court for the Eastern District of Michigan, applying Michigan law, has held that an exclusion in an investment adviser’s professional liability policy applicable to claims arising from the sale of...more

Coverage for Negligence Claim Against Law Firm Arising from Wire Fraud Barred by Professional Liability Policy’s “Theft Exclusion”

Applying Florida law, the United States District Court for the Southern District of Florida has held that a theft exclusion bars coverage under a lawyers’ professional liability policy for a negligence claim against the...more

Insurance Commissioner’s Suit Brought in his Capacity as Receiver of Insolvent Insurer Does Not Constitute A “Governmental Claim”

The United States District Court for the District of Connecticut has held that a lawsuit filed by a state insurance commissioner in his capacity as private receiver on behalf of an insolvent insurer was not a “Governmental...more

Coverage for Suit Arising from Settlement of Previous Litigation Not Barred by Prior and Pending Proceeding Exclusion

Applying California law, the United States Court of Appeals for the Ninth Circuit has held that a fiduciary liability policy’s Prior and Pending Proceeding Exclusion did not bar coverage for litigation concerning...more

Delaware Trial Court Holds that Fraudulent Transfer Claim by Bankruptcy Trustee is a “Securities Claim”

Applying Delaware law, the Delaware Superior Court has held that a bankruptcy trustee’s fraudulent transfer claim constitutes a “Securities Claim” under a D&O policy. Verizon Commc’ns Inc. v. Nat’l Union Fire Ins. Co. of...more

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