Tag Archives: policy interpretation

Third Circuit Finds Major Shareholder Exclusion Ambiguous

D&O insurance policies sometimes contain Major Shareholder Exclusions, precluding coverage for claims brought by shareholders’ with ownership percentages above a certain specified ownership threshold. But when is the shareholder’s ownership percentage to be determined – at the time of policy inception or at the time of the claim? This issue was among the D&O insurance … Continue Reading

D&O Insurance: Warranty Exclusion Precludes Coverage Due to Application Misrepresentation

A federal district court has held that because of an insured company’s application misrepresentation about possible M&A activity, a D&O insurance policy’s Warranty Exclusion precludes coverage for the policyholder’s costs incurred in defending claims arising out of the insured company’s acquisition. The court’s opinion raises interesting questions about how the meaning of application questions is … Continue Reading
LexBlog