2023 Financial Lines Executive Liability Newsletter 

In this issue:

• INSURER WEAPONIZES SECTION 533 IN DENIAL OF COVERAGE FOR A WILFUL ACT DESPITE FINAL ADJUDICATION LANGUAGE IN THE POLICY
• INTENTIONAL ACTS, BARS COVERAGE UNDER AN OCCURRENCE BASED POLICY
• COURT REJECTS INSURER'S MOTION TO DISMISS SUIT SEEKING CRIME COVERAGE FOR $213,000 CRIME LOSS ON DEFINITION OF "OWNERSHIP" OF LOST FUNDS
• CLAIM THAT PREDATES POLICY INCEPTION IS DENIED COVERAGE
• EXCLUSIONS THAT REDUCE COVERAGE WITHOUT NOTICE IS PRECLUDED FOR A SINGLE POLICY, NOT FOR SUBSEQUENT POLICIES
• MEANING OF OTHER INSURANCE DEPENDS ON SUBTLE BUT MEANINGFUL DISTINCTION
• ILLINOIS SUPREME COURT HOLDS THAT UNION EMPLOYEES CANNOT SUE FOR BIPA VIOLATIONS OUTSIDE OF COLLECTIVE BARGAINING AGREEMENT
• SOCIAL MEDIA GAINT'S DERIVATIVE SUIT DISMISSED; VICE CHANCELLOR CRITICAL OF PLAINTIFFS' LACK OF FACTUAL SUPPORT FOR THEIR ALLEGATIONS OF COMPETITIVE BULLYING
• ANTITRUST COVERAGE OF D&O POLICY LIMITED BY PROFESSIONAL SERVICES EXCLUSION

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In this issue:

• MCDONALD'S 2.0: COURT HOLDS THAT A BOARD OF DIRECTORS CANNOT BE LIABLE FOR A BREACH OF THE DUTY OF OVERSIGHT
• ILLINOIS COURT ALLOWS RESCISSION CLAIM IN COVERAGE ACTION TO MOVE FORWARD
• ERISA EXCESSIVE FEE CLASS ACTION CASE DISMISSED
• FEDERAL COURT ALLOWS RECISSION AGAINST INSURANCE COMPANY
• A SPAC RUNOFF POLICY COVERS DEFENSE COSTS OF TARGET COMPANY'S FORMER DIRECTORS & OFFICERS
• NON-PROFIT ALLEGES OIL COMPANY HAS DUTY TO MANAGE CLIMATE CHANGE RISKS
• FEDERAL APPELLATE COURT SUPPORTS COVERAGE IN A FUNDS TRANSFER FRAUD CASE
• NO COVERAGE UNDER D&O RENEWAL POLICY FOR "RELATED" BANKRUPTCY TRUSTEE CLAIMS
• VALIDATING BILLION OVERISSUED SHARES FOLLOWING DE-SPAC MERGER WAS EQUITABLE, SAID DELAWARE COURT
• SHOULD EMPLOYERS PAY OVERTIME COMPENSATION TO EMPLOYEES EARNING SIX FIGURES SALARIES? WHY NOT, SAYS THE SUPREME COURT
• COURT RULES THAT AN INSOLVENCY EXCLUSION PROVIDES A COMPLETE BAR TO COVERAGE

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In this issue:

• DELAWARE COURT OF CHANCERY RULES THAT OFFICERS HAVE DUTY OF OVERSIGHT WITH RESPECT TO SEXUAL MISCONDUCT CASE, CALIFORNIA COURT ADDRESSES SIMILAR ISSUE
• BUMP-UP EXCLUSION PRECLUDES COVERAGE FOR MERGER LITIGATION SETTLEMENT
• 2022 TRENDS IN SECURITIES CLASS ACTION LITIGATION
• DELAWARE INCREASES SCRUTINY OF SPAC DISCLOSURES
• A JOINT VENTURE MEMBER SHOULD BE ABLE TO PRESENT ANY INFORMATION TO THE APPRAISER
• CONSTRUCTIVE NOTICE NOT SUFFICIENT IN THE CLAIMS MADE AND REPORTED WORLD
• FAILURE TO COMPLY WITH NOTICE REQUIREMENT COSTS BANK EXCESS COVERAGE
• CONTRADICTORY COMPLAINTS LEADS TO DISMISSAL ON ALL ALLEGATIONS
• IN A COMPETING CLAIMS SCENARIO, INTERPLEADER IS APPROPRIATE
• A PROVISION FOR TREATMENT OF RELATED CLAIMS SAVES A RELATED CLAIM EXCLUSION FROM DENYING COVERAGE
• APPRAISAL ACTION IS NOT A SECURITIES CLAIM UNDER DELAWARE LAW
• ILLINOIS COURTS CONTINUE TO FIND POTENTIAL BIPA COVERAGE UNDER GENERAL LIABILITY POLICIES

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In this issue:

• BACK TO BASICS: AMBIGUITIES ARE TO BE CONSTRUED IN FAVOR OF THE INSURED AND AGAINST THE INSURER
• INSURANCE COMPANY DELAY IN ACTING TO RESCIND INSURANCE POLICY WAIVES RESCISSION
• SIGNIFICANT DECISIONS TO WATCH IN 2023: WILL FORUM SELECTION PROVISIONS SURVIVE?
• INSURED V. INSURED EXCLUSION PRECLUDES COVERAGE WHEN ASSISTANCE PROVISION CARVE-BACK NOT TRIGGERED
• INSURANCE BUYERS BEWARE: CRUCIAL EXCLUSIONS WOVEN INTO THE DEFINITION OF LOSS
• BOILERPLATE RESERVATION OF RIGHTS LETTER PRECLUDES CARRIER FROM INVOKING COVERAGE DEFENSES

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