One of the vestiges of the global financial crisis is that company directors and officers now face more scrutiny than ever.
Coverage for DOJ Investigation Not Barred Because No Way to Determine Whether There Was Substantial Overlap with Earlier Lawsuits
A federal court in California has held that an investigation did not relate back to earlier lawsuits against the insured, nor was coverage barred by the policy’s prior or pending litigation exclusion, because the investigation was “shrouded in secrecy,” and it was therefore impossible to determine whether the investigation or allegations arose out of or were based upon the prior litigation.
Unfortunately, where you get your news can determine what the news really is.
Keeping Up with the Times: NV Supreme Court Declares Under What Circumstances Insurers Must Provide Independent Counsel
In an opinion issued on September 24, 2015, the Nevada Supreme Court addressed the issue of under what circumstances an insurer is obligated to provide its insured with independent counsel.
In many instances when allegations of wrongdoing surface at a company, the appropriate course for the company’s board will be to appoint an independent committee to investigate the allegations.
The Virginia Supreme Court recently clarified that, even if the suit limitation in a standard fire insurance policy incorporates the language required by Virginia Code, the suit limitation language is not subject to statutory tolling of statutory limitation periods.
Claim Asserting Innocence in Alleged Copyright Infringement “Arises Out of” Copyright Infringement and Triggers Exclusion
Applying Massachusetts law, the United States District Court for the District of Massachusetts has held that a policy exclusion for injury “arising out of” copyright infringement bars coverage for a lawsuit alleging that the claimant infringed the insured’s software copyrights, even in the absence of a claim for infringement by the insured.
Emotions Set Aside: Widow Denied Husband’s Life Insurance Benefits for Failure to Report Change in Health After Application
The case of Yafei Huang v. Life Insurance Co. of North America, in the U.S. Court of Appeals for the Eighth Circuit dealt with the denial of life insurance benefits — and is a strong reminder to consumers to read the fine print.
In the UK, as in South Africa, liability insurance is triggered when the insured becomes “legally liable to pay the third party claim”.
Defense Costs Paid Under Reservation of Rights Do Not Erode Fiduciary Liability Policy’s Limit of Liability?
As part of our beat here at the The D&O Diary, we read a lot of judicial opinions. We are quite accustomed to the fact that the case outcomes can be and often are all over the map. Just the same, every now and then we read a decision that really makes us scratch our heads.