No Duty to Defend Claims Brought by California Attorney General Under Unfair Competition or False Advertising Laws

By Anna Schaffner on October 1, 2019

The United States District Court for the Central District of California has held that California Insurance Code Section 533.5 precludes a duty to defend any claim brought by the California Attorney General under the Unfair Competition Law or False Advertising Law for the recovery of a fine, penalty, or restitution. Adir Int’l, LLC v. Starr Indem. & Liab. Co., 2019 WL 4462613 (C.D. Cal. Sept. 10, 2019).…

Executive Summary Blog

Fifth Circuit Holds Securities Exclusion Bars Coverage for Suit Arising out of Sale of Equity Interests

By Anna Schaffner on August 7, 2019

Applying Texas law, the Fifth Circuit has held that a D&O policy’s securities exclusion barred coverage for a suit for misrepresentation and misconduct that arose out of a sale of equity interests. Gleason v. Markel Am. Ins. Co., 2019 WL 3437642 at *1 (5th Cir. July 30, 2019).…

Executive Summary Blog

Former Of Counsel Is Still “Insured Person” After Leaving Law Firm

By Anna Schaffner on June 28, 2019

The Ohio Court of Appeals has held that an “of counsel” attorney was an “Insured Person” under his former law firm’s professional liability policy for purposes of a malpractice action involving allegations that occurred both before and after the attorney worked at the firm. Gallagher Sharp, L.L.P. v. Miller Goler Faeges Lapine, L.L.P., 2019 WL 2319296 (Ohio Ct. App. May 30, 2019).…

Executive Summary Blog

Prior Favorable Coverage Determination is Evidence of Good Faith

By Anna Schaffner on May 14, 2019

The United States District Court for the District of Nevada, applying Nevada law, has held that the court’s prior favorable coverage determination was evidence that an insurer did not act in bad faith when refusing to defend or provide coverage under a policy. My Left Foot Children’s Therapy, LLC v. Certain Underwriters at Lloyd’s London, 2019 WL 1810956 (D. Nev. Apr. 23, 2019).…

Executive Summary Blog

Run-Off Exclusion Precludes Coverage for OIG Subpoena

By Anna Schaffner on April 22, 2019

The United States District Court for the Eastern District of Texas, applying Texas law, has held that a government-issued subpoena constituted a “Claim” under a directors and officers liability policy, but also determined that the policy’s “run-off exclusion” barred coverage. Ocean’s Healthcare, L.L.C. v. Illinois Union Ins. Co., 2019 WL 1437955 (E.D. Tex. March 30, 2019).…

Executive Summary Blog

Charter School’s Notice of Closure Constitutes a “Claim” First Made Before the Policy Period

By Anna Schaffner on March 26, 2019

Applying Nevada law, the United States District Court for the District of Nevada has held that an insurer did not owe coverage to its insured charter school because a “Notice of Closure” constituted a “claim” first made before the policy period. Argent Preparatory Acad. f/k/a Silver State Charter Sch. v. Philadelphia Indem. Ins. Co., 2019 WL 1049384 (D. Nev. Mar. 4, 2019).…

Executive Summary Blog

Excess Insurer Not Bound by Primary Insurer’s Payment of Uninsurable Disgorgement Settlement

By Anna Schaffner on November 27, 2018

Applying California law, the United States District Court for the Central District of California has held that a follow-form excess insurer was not bound by the primary insurer’s decision to pay a settlement because the settlement constituted uninsurable disgorgement that did not trigger the excess insurer’s policy. Axis Reinsurance Co. v. Northrop Grumman Corp., No. 2:17-CV-8660 (C.D. Cal Nov. 16, 2018).…

Anna Schaffner

No Duty to Defend Claims Brought by California Attorney General Under Unfair Competition or False Advertising Laws

Fifth Circuit Holds Securities Exclusion Bars Coverage for Suit Arising out of Sale of Equity Interests

Former Of Counsel Is Still “Insured Person” After Leaving Law Firm

Prior Favorable Coverage Determination is Evidence of Good Faith

Run-Off Exclusion Precludes Coverage for OIG Subpoena

Charter School’s Notice of Closure Constitutes a “Claim” First Made Before the Policy Period

Excess Insurer Not Bound by Primary Insurer’s Payment of Uninsurable Disgorgement Settlement

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