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The financial institutions insurance solutions offered by Alliant cover a wide range of liability exposures.
Insight

2024 Financial Lines Executive Liability NewsletterĚý

By Alliant

Navigating today’s complex risk environment can be a monumental task. Steve Shappell, Alliant Claims & Legal, spearheads Executive Liability Insights, a monthly review of news, legal developments and information on executive liability, cyber risk, employment practices liability, class action trends and more.

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In this issue:

  • EXCESS CARRIERS CANNOT CHALLENGE PAYMENTS OF UNDERLYING INSURERS
  • COURT REJECTS NUMEROUS ATTEMPTS BY D&O INSURER TO DENY COVERAGE UNDER A-SIDE COVERAGE
  • UNDISCLOSED RISK BEFORE THE PROFESSIONAL LIABILITY POLICY’S INCEPTION IS THE PATHWAY TO RESCISSION LITIGATION
  • D&O INSURERS OF A PHARMACY TO PAY ONE OF THE LARGEST DERIVATIVE SETTLEMENTS RELATING TO OPIOID LITIGATION
  • MASSACHUSETTS SUPREME COURT FINDS WIRETAP LAWS FAIL TO SUPPORT WEBSITE TRACKING SOFTWARE CLAIMS
  • COVERAGE DENIED FOR LATE NOTICE

In this issue:

  • D&O CARRIER CANNOT DENY COVERAGE BASED ON INSURED VERSUS INSURED EXCLUSION DUE TO BANKRUPTCY EXCEPTION
  • EXCESS CARRIERS WITH AN EXPRESS DISCLAIMER ON DUTY TO DEFEND ARE NOT REQUIRED TO ADVANCE DEFENSE COSTS
  • INSURER CANNOT DENY COVERAGE FOR DEFENSE COSTS BASED ON BREACH OF CONTRACT EXCLUSION DUE TO PROFESSIONAL SERVICES EXCEPTION
  • COURT HOLDS THAT LATE NOTICE PREJUDICED AN EXCESS CARRIER AND RELIEVES CARRIER FROM PROVIDING A DEFENSE
  • THE IMPORTANCE OF INDEMNIFICATION PROVISIONS IN CONTRACTS WITH THIRD PARTY VENDORS
  • NO COVERAGE FROM EXCESS INSURERS UNTIL EXHAUSTION IS SHOWN
  • FTC SETTLEMENT WITH HOTEL CHAIN PLACES CYBERSECURITY IN FOCUS

In this issue:

  • ARBITRATION PROVISION IN D&O INSURANCE POLICY DOES NOT APPLY TO DIRECTORS AND OFFICERS
  • NETWORK-SECURITY INSURANCE CARRIER HAD A DUTY TO REIMBURSE AND DEFEND THE INSURED
  • EXCESS CARRIER HAD NO OBLIGATION TO PAY BASED ON ANTITRUST EXCLUSION AND EXHAUSTION
  • ILLINOIS AMENDS HUMAN RIGHTS ACT CREATING LIABILITY FOR EMPLOYERS’ USE OF AI
  • CIRCUIT COURT CONSIDERS WHETHER INSUREDS’ NOTICE WAS TIMELY UNDER NEW YORK CONTRACT STATUTE
  • 9TH CIRCUIT COURT OF APPEALS APPLIED “PURCHASER-SELLER RULE” TO BAR CLAIMS BROUGHT BY SPAC INVESTORS
  • COURT REVIVES PRIVACY CLASS ACTION AGAINST A LEADING SEARCH ENGINE

In this issue:

  • AMENDMENT TO BIPA OFFERS POTENTIAL RELIEF TO EMPLOYERS
  • CALIFORNIA SUPREME COURT RULES IN FAVOR OF APP-BASED
  • TRANSPORTATION COMPANIES BY UPHOLDING GIG WORKER LAW
  • CROWDSTRIKE OUTAGE SHOULD PROMPT INSUREDS TO REVIEW THEIR POLICY WORDING
  • IN TEXAS, DENIAL OF COVERAGE BASED ON MATERIAL MISREPRESENTATION REQUIRES INTENT TO DECEIVE
  • FEDERAL COURT RULES IN FAVOR OF INSURER REGARDING LATE NOTICE AND PRIOR KNOWLEDGE EXCLUSION
  • NEW YORK FINANCIAL REGULATORS TACKLE USE OF AI BY INSURANCE INDUSTRY
  • NO-ACTION CLAUSE IS NOT AN ESCAPE FROM THE DUTY TO DEFEND

In this issue:

  • SUPREME COURT ENDS CHEVRON DEFERENCE
  • COVERAGE NEUTRALITY – DISTRICT COURT RULES THAT INSURER CANNOT IMPROPERLY INTERVENE IN INSUREDS’ INTERNAL BOARD DISPUTES
  • D&O PROFESSIONAL SERVICES EXCLUSION BARS COVERAGE FOR SOFTWARE DESIGN
  • INSURERS COULD NOT WITHOLD CONSENT TO A SETTLEMENT UNREASONABLY, BUT WHAT DOES THIS MEAN?
  • SECOND CIRCUIT REINFORCED SHAREHOLDER STANDING TO ASSERT SHORT-SWING PROFIT CLAIMS UNDER SECTION 16(B)
  • A FEDERAL CIRCUIT COURT BROADLY APPLIED THE BREACH OF CONTRACT EXCLUSION
  • SECOND CIRCUIT RULES AGAINST THE ENFORCEABILITY OF ARBITRATION CLAUSES IN ERISA PLANS
  • OTHER INSURANCE CLAUSE RELIEVES INSURER OF ITS DUTY TO DEFEND OBLIGATIONS

  • SUPREME COURT PERMITS INSURER TO CHALLENGE PROPOSED CHAPTER 11 PLAN
  • PANDEMIC RELATED BUSINESS INCOME LOSS IS NOT RECOVERABLE UNDER PROPERTY INSURANCE
  • PENDING AND PRIOR LITIGATION EXCLUSION TRIGGERED BY QUI TAM ACTION
  • MAJOR HOSPITAL SYSTEM HIT BY CYBERATTACK
  • CYBER POLICY CORRECTLY OFFSETS PORTION OF NORMAL OPERATING EXPENSES
  • COLORADO ENACTS FIRST IN THE NATION LAW GOVERNING THE
    USE OF AI

  • DELAWARE CLARIFIES CONTROLLING STOCKHOLDERS’ FIDUCIARY DUTIES
  • NO COVERAGE UNDER E&O POLICY FOR A PAYMENT TO GOVERNMENT AGENCY FOLLOWING AN INVESTIGATION
  • SECURITIES CLASS ACTION AND SUBSEQUENT GOVERNMENT INVESTIGATIONS ARE NOT RELATED;
  • TWO POLICY PERIODS TRIGGERED TO COVER LOSS
  • IN ESOP LITIGATION, DUTY TO DEFEND LASTS AS LONG AS COVERED ALLEGATIONS DO, EVEN IN LIGHT OF OVERBROAD EXCLUSIONS
  • BAD FAITH ALLEGATION BY INSURED REQUIRED TO TRIGGER COVERAGE UNDER INSURANCE COMPANY'S PROFESSIONAL LIABILITY POLICY
  • BANKRUPTCY COURT DECISION ALLOWS CREDITOR’S COMMITTEE DERIVATIVE ACTIONS AGAINST INSOLVENT LLC DEBTORS
  • THIRD CIRCUIT LOWERS STANDARD OF REVIEW FOR SHAREHOLDER DERIVATIVE SUITS
  • NON-ACTION AND PRIOR ACTS CLAUSES BAR D&O COVERAGE

  • UPDATE: A FEDERAL COURT DECIDES BUMP-UP EXCLUSION BARS COVERAGE UNDER D&O POLICY FOLLOWING A MERGER
  • INSURERS AVOID COVERAGE BASED ON CHANGES IN EXPOSURE PROVISION
  • AN INDEMNIFICATION CONTRACT REQUIRES AN OUT-OF-POCKET LOSS
  • SECOND CIRCUIT PRECLUDES COVERAGE UNDER A DUTY TO DEFEND POLICY IF THE BANKRUPTCY/INSOLVENCY EXCLUSION IS TRIGGERED
  • TRIGGERING THE PRIOR ACTS EXCLUSION IS A HIGH BAR FOR INSURERS TO MEET
  • EXCESS D&O INSURER’S RELATED CLAIMS ARGUMENT FAILS
  • INSURER SHOULD ACCEPT COVERAGE UNLESS IT IS ABLE TO SHOW THAT COVERAGE IS EXPRESSLY EXCLUDED
  • FIFTH CIRCUIT LIMITS THE BROAD APPLICATION OF THE CONTRACT EXCLUSION
  • 2ND CIRCUIT RULES PRE-SUIT DEMAND LETTER CONSTITUTES A CLAIM
  • NON-PARTY TO PROFESSIONAL LIABILTIY POLICY CANNOT SEEK CONTRIBUTION FROM INSURER

  • SPAC INSURERS CANNOT AVOID ADVANCEMENT OF DEFENSE COSTS BASED ON CHANGE-IN-CONTROL EXCLUSION
  • LATE NOTICE RESULTS IN NO COVERAGE UNDER CLAIMS-MADE POLICY
  • PLAINTIFFS LAWYER’S LETTER WARNING OF POTENTIAL LITIGATION IS NOT A CLAIM FOR DAMAGES
  • IN TEXAS, ONLY SETTLEMENT AGREEMENTS RESULTING FROM AN ADVERSARIAL PROCESS MAY BIND LIABILITY INSURERS
  • THIRD CIRCUIT DENIES EN BANC REHEARING REQUEST FOR A PHARMACEUTICAL DRUG MANUFACTURER
  • PROFESSIONAL LIABILITY POLICY RESCINDED FOR MISSTATEMENT IN APPLICATION UNDER VIRGINIA LAW

  • THE SUPREME COURT ESTABLISHES A WHISTLEBLOWER-FAVORING FRAMEWORK FOR SARBANES-OXLEY ACT VIOLATIONS
  • CALIFORNIA JURY AWARDS SHAREHOLDERS $14.1 MILLION IN DAMAGES AFTER BUYOUT DEEMED MISLEADING AND UNFAIR
  • EXCESS CARRIER HAS NO DUTY TO DEFEND BASED ON “OTHER INSURANCE” CLAUSE
  • COURT FINDS COVERAGE FOR LOSSES LEADING BACK TO A SYSTEM FAILURE
  • PONZI SCHEME FRAUDULENT TRANSFER INSURABLE AND NOT BARRED BY LENDING ACTS EXCLUSION
  • A CONDITION PRECEDENT IN EXCESS POLICIES CAN LEAD TO COVERAGE BEING DENIED
  • THE OBJECTIVE/SUBJECTIVE TEST FOR PRIOR KNOWLEDGE EXCLUSIONS
  • WHETHER AN INDEPENDENT DIRECTOR IS TRULY INDEPENDENT IS A HIGHLY FACT-SPECIFIC QUERY

  • THE DEFINITION OF A SECURITIES CLAIM, NOT ALWAYS EASY TO KNOW
  • COURT OF CHANCERY DISMISSES DERIVATIVE COMPLAINT FOR FAILURE TO PLEAD DEMAND FUTILITY
  • THE INTERPLAY OF RELATED CLAIMS AND PRIOR NOTICE EXCLUSION
  • ONEROUS PLEADING BURDEN IMPOSED FOR A CAREMARK BREACH OF FIDUCIARY DUTY CLAIM AGAINST AN OFFICER
  • WHEN DOES A CIVIL INVESTIGATION DEMAND BECOME A CLAIM TO ALLOW DEFENSE COSTS TO ERODE THE RETENTION
  • AN INDICTMENT NOT DEMANDING RELIEF IS NOT A “CLAIM” UNDER A PROFESSIONAL LIABILITY POLICY

Alliant note and disclaimer: This document is designed to provide general information and guidance. Please note that prior to implementation your legal counsel should review all details or policy information. Â鶹ӳ»­ Services does not provide legal advice or legal opinions. If a legal opinion is needed, please seek the services of your own legal advisor or ask Â鶹ӳ»­ Services for a referral. This document is provided on an “as is” basis without any warranty of any kind. Â鶹ӳ»­ Services disclaims any liability for any loss or damage from reliance on this document.

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