Tag Archives: No loss coverage defense

D&O Insurance: Consent Judgment Including Covenant Not to Execute Constitutes “Loss”

In order to try to resolve litigation pending against them, policyholders sometimes enter a settlement in which they agree to the entry of a consent judgment against them and to the assignment to the claimants of their rights under their insurance policy, subject to the claimants’ agreement not to execute the judgment against them. The … Continue Reading

Court Holds Professional Liability Insurance Covers Restitutionary Settlement

On July 3, 2014, in an interesting decision that is sure to stir up much discussion and controversy, District of Minnesota Judge Paul Magnuson, applying Delaware law, held that U.S. Bank was entitled to coverage under its professional liability insurance for restitutionary amounts it paid in settlement of an overdraft fee overcharge class action. The … Continue Reading

Management Liability Insurance: Amounts Due Based on “Pre-Existing Duty” Not Covered Loss

An employer’s management liability insurance policy does not provide coverage for employees’ claims that – contrary to statutory requirements — the employer collected and failed to remit gratuities, because amounts owing due to a preexisting statutory duty do not represent covered loss, according to a recent decision of a Massachusetts federal court applying Massachusetts law. … Continue Reading