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Insight

2025 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:

  • DELAWARE COURT AFFIRMS STOCK PAYMENTS AS COVERED LOSS WITH BROAD D&O POLICY INTERPRETATION
  • COURT WILL NOT FORCE A NON-CONSENTING CARRIER TO ACCEPT A REASONABLE SETTLEMENT, BUT ISSUES WARNING
  • D&O POLICY’S DUTY TO ADVANCE NOT LIMITED SOLELY TO WHEN CARRIER SEEKS TO VOID THE POLICY
  • RUNOFF OR EXTENDED REPORTING PERIOD DOES NOT CURE THE CLAIMS MADE AND REPORTED ISSUE
  • REPLACEMENT POLICY TERMINATES EXTENDED REPORTING WINDOW ON PREVIOUS POLICY

In this issue:

  • AWARD UPHELD IN D&O ALLOCATION DISPUTE
  • A GOOD REMINDER: A CONVICTION IS NOT A FINAL NON-APPEALABLE JUDGMENT
  • TRADE SECRET CLAIM MEETS DEFINITION OF A “PRIVACY EVENT” UNDER A PROFESSIONAL LIABILITY POLICY
  • D&O INSURANCE PROCEEDS AVAILABLE TO OFFICERS IN CHAPTER 7 BANKRUPTCY WHEN ESTATE LACKS INTEREST IN PROCEEDS
  • BIOPHARMACEUTICAL COMPANY REACHES MASSIVE SETTLEMENT AFTER FAILING TO DISCLOSE IMPORTANT PROBLEMS RELATED TO MEDICATIONS
  • ERISA WITHDRAWAL LIABILITY EXTENDS TO THOSE IN THE SAME "CONTROL GROUP"
  • CLAIMS-MADE POLICY’S RETROACTIVE DATE PROVISION BARS COVERAGE FOR PRE-POLICY BIPA CLAIM
  • WHY DUTY TO DEFEND IS A GREAT TOOL FOR COVERAGE ADVOCACY

In this issue:

  • POLICY LANGUAGE LEADS TO BAD OUTCOMES
  • A CALIFORNIA COURT RATIFIED A DENIAL OF INDEMNITY COVERAGE FOR A RETALIATION CLAIM UNDER SECTION 533
  • SECURITIES CLASS ACTION AND DERIVATIVE LAWSUITS RELATE TO PRIOR NOTICE OF CIRCUMSTANCE
  • EXCESS PROFESSIONAL SERVICES LIABILITY CARRIER MUST PAY REMAINING DEFENSE COSTS AND SETTLEMENT AMOUNT FOLLOWING EXHAUSTION
  • PROFESSIONALS ARE HELD TO AN OBJECTIVE STANDARD AND ARE MEASURED BY A REASONABLE MEMBER OF THE SAME DISCIPLINE
  • CALIFORNIA COURT CLARIFIED THAT BRANDT FEES DO NOT INCLUDE DAMAGES IN EXCESS OF POLICY LIMITS
  • MISREPRESENTATION IN RENEWAL APPLICATION LEADS TO RESCISSION

In this issue:

  • SECOND CIRCUIT UPHOLDS DISMISSAL OF SHORT-SWING CLAIM AGAINST INVESTMENT FUND
  • COURT AFFIRMS CARRIER’S SETTLEMENT AUTHORITY AND DISCRETION OVER AN INSURED’S OBJECTION
  • CAN PRIVATE PARTIES SUE UNDER THE INVESTMENT COMPANY ACT OR IS THE SEC ONLY AUTHORIZED TO ENFORCE IT? THE SUPREME COURT SHOULD CLARIFY
  • PRIOR NOTICE EXCLUSION CANNOT BAR COVERAGE FOR UNRELATED PRIOR WRONGFUL ACTS

In this issue:

  • FAILURE TO COMPLY WITH THE CLAIMS-MADE POLICY NOTICE REQUIREMENTS BARS COVERAGE FOR INDIVIDUAL EMPLOYEES DESPITE CONSTRUCTIVE NOTICE
  • STATES SEEK TO LIMIT CORPORATE AND PRIVATE EQUITY INVOLVEMENT IN HEALTHCARE
  • CYBER SECURITY FIRM SUED FOR HANDING OVER PASSWORDS TO HACKERS AND FAILING TO FOLLOW SECURITY PROTOCOLS
  • A MIXED OUTCOME: FEDERAL JUDGE NARROWS THE SCOPE OF DATA BREACH LITIGATION
  • THE PRESENCE OF A CONTRACT DOES NOT RELIEVE THE CARRIER OF THEIR INDEMNIFICATION OBLIGATIONS

In this issue:

  • GRAMMAR MATTERS: SERIES-QUALIFIER INTERPRETIVE CANON ANALYSIS RESTORES THE DUTY TO DEFEND
  • PROFESSIONAL LIABILITY POLICY RESCINDED DUE TO ATTORNEY’S CONCEALED DISCIPLINARY HISTORY IN APPLICATION
  • DELAWARE COURT FINDS THAT A TOLLING AGREEMENT FROM THE SEC IS A CLAIM; BUT DOES NOT
  • TRIGGER ENTITY COVERAGE FOR A SECURITIES CLAIM
    DILUTION CLAIM CARVE-BACK TO INSURED V. INSURED EXCLUSION SAVES COVERAGE

In this issue:

  • FOURTH CIRCUIT HOLDS THAT BUMP-UP EXCLUSION PRECLUDES COVERAGE FOR SETTLEMENT, INCLUDING THE PORTION THAT ULTIMATELY WENT TOWARD ATTORNEYS' FEES
  • SENATE BILL 29 MAKES TEXAS A PREFERRED STATE FOR INCORPORATION
  • A BUSINESS’ PLACE OF INCORPORATION GUIDES RULES FOR FILING DERIVATIVE LAWSUITS IN NEW YORK
  • OREGON CRACKDOWNS ON CORPORATE OWNERSHIP IN THE HEALTHCARE SPACE WITH SENATE BILL 951

In this issue:

  • THE SUPREME COURT EXPANDS RICO TO REDRESS BUSINESS LOSSES THAT STEMS FROM PERSONAL INJURIES
  • INSURER IS NOT LIABLE FOR SETTLEMENT IT DID NOT CONSENT TO, EVEN IF IT MAINTAINED A DENIAL AT THE TIME OF THE SETTLEMENT
  • COURT OF APPEALS RULING BASED UPON § 533 – HOLDING INSURER IS NOT OBLIGATED TO ADVANCE DEFENSE COSTS FOR WILLFUL ACTS
  • NO COVERAGE FOR WRONGFUL ACTS ALLEGED PRIOR TO TRANSACTION AS WELL AS CAPACITY ISSUES
  • D&O POLICY’S REGULATORY CLAIMS ENDORSEMENT COVERAGE IS SUBJECT TO A RETENTION
  • NEVADA’S PLEADING STANDARDS FOR CONFLICTED TRANSACTIONS STRICTER THAN DELAWARE
  • LLC AGREEMENTS ARE CONTROLLED BY THEIR TERMS AND NOT IMPLIED DUTIES

In this issue:

  • INSURERS AVOID COVERAGE BASED ON CHANGES IN EXPOSURE PROVISION
  • INSURERS NOT OBLIGATED TO COVER BIPA CLAIMS UNDER BROAD RECORDING-AND-DISTRIBUTION EXCLUSION
  • AUTOMAKER SETTLES FOR ALLEGED VIOLATIONS OF CALIFORNIA CONSUMER PRIVACY ACT
  • TWO CASES FILED 18 YEARS APART ARE DEEMED UNRELATED IN A FACT INTENSIVE ANALYSIS
  • COURT RULES THAT UNREAD E-MAILS TRIGGER CLAIMS-MADE POLICY UPON RECEIPT

In this issue:

  • COURT BROADLY APPLIES “MEANINGFUL LINKAGE” STANDARD IN INTERRELATED WRONGFUL ACTS ANALYSIS
  • NINTH CIRCUIT HOLDS THAT SHAREHOLDER CLAIMS MUST BE TRACEABLE UNDER SECTION 11 AND 12(a)(2)
  • TRUSTEES HAVE NO STANDING TO SUE D&O INSURERS FOR DECLARATORY JUDGMENT
  • COURT REJECTS INSURER’S BROAD APPLICATION OF A BREACH OF CONTRACT EXCLUSION IN QUI TAM ACTION
  • DELAWARE’S CONTROVERSIAL AMENDMENTS TO ITS CORPORATE LAW PASSED BY STATE SENATE IN RESPONSE TO CONCERNS OVER “DEXIT”
  • INSURERS AVOID COVERAGE BASED ON “CHANGES IN EXPOSURE” PROVISION
  • DELWARE COURT FAVORS BROAD COVERAGE AND HOLDS STOCK PAYMENT CONSTITUTES COVERED LOSS
  • FCC TO MOVE AWAY FROM SECTION 230 PROTECTION FOR ONLINE PLATFORMS?

  • AS THE US REDUCES REGULATION ON FOREIGN CORRUPT PRACTICES, THE UK IS INCREASING SUCH REGULATION
  • COURT APPLIES BUSINESS JUDGMENT RULE TO REINCORPORATION ABSENT PENDING LIGATION
  • INSURER ABSOLVED FROM DEFENDING BREACH OF FIDUCIARY DUTY ALLEGATIONS BASED ON PRIOR NOTICE EXCLUSION
  • SUBLIMIT ACTS AS AN EXCLUSION TO COVERAGE
  • THE FTC AND CONSUMERS DECLARE WAR ON DATA COLLECTORS: INSURANCE IMPLICATIONS ARE LIKELY TO FOLLOW

  • D&O POLICY’S RELATED WRONGFUL ACTS EXCLUSION BARS COVERAGE
  • FIFTH CIRCUIT’S DECISIONS MAY FURTHER DERAIL ESG INVESTING EFFORTS
  • DELAWARE COURT APPLIES NEW YORK LAW TO A COVERAGE DISPUTE ABOUT RELATEDNESS
  • NORTH CAROLINA SUPREME COURT FINDS PROPERTY INSURANCE POLICY COVERS LOSS OF PROPERTY USE DUE TO COVID RESTRICTIONS
  • NARROW INTERPRETATION OF WRONGFUL ACT DEFINITION IN PROFESSIONAL LIABILITY POLICY PRECLUDES COVERAGE FOR PROPERTY MANAGEMENT FIRM
  • DELAWARE SUPERIOR COURT RULES “BUMP-UP PROVISION” DOES NOT APPLY TO BAR COVERAGE FOR SETTLEMENT OF SHAREHOLDER CLASS ACTION

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. Âé¶ąÓł»­ 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 Âé¶ąÓł»­ Services for a referral. This document is provided on an “as is” basis without any warranty of any kind. Âé¶ąÓł»­ Services disclaims any liability for any loss or damage from reliance on this document.

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