April 2020

• SEC Enforcement Action Deemed a Single Claim With Prior SEC Investigation and Shareholder Suits
• Insights on Insurance Delaware Supreme Court Reverses Chancery Court; Concludes Federal Forum Selection Provisions Enforceable For 1933 Act Claims
• SEC Investigation Is a Claim First Made When Formal Order of Investigation Issues
• Ninth Circuit Holds Demand Letter and Suit Alleging Same Wrongful Acts Are Not Necessarily a Single Claim Where Policy Lacks Related Claims Provision
• No Coverage for Underlying Settlement with Government Because Government Was Not Insured’s “Client”
• Absent Prejudice, Breach of Notice Conditions Does Not Relieve Insurer of Coverage Obligations
• Contract Exclusion Bars Coverage for Lawsuit Over Stock Repurchase Agreement
• Vague Allegations Did Not Trigger Prior Knowledge Condition at Duty-to-Defend Stage
• Lack of Knowledge Requirement Nixes Coverage for Social Engineering Fraud Under Computer Transfer or Funds Transfer Fraud Limits
• Insurer Must Defend Legal Malpractice Claim for Damages in the Amount of Fees Paid, Despite Carve Out of “Legal Fees” from Definition of “Damages”
• Declaratory Judgment Complaint Constitutes a Reportable Claim for a Wrongful Act; Subsequent Amended Complaint Adding Insured Defendants Not a Separate Claim
• Insurer’s Failure to Obtain Allocation in Arbitration Award Results in Coverage for Full Award
• Insurer Has No Duty to Defend Insured in “Defensive” Arbitration Proceeding
• Breach of Contract Exclusion Applies to Lost Profits Award

March 2020

• Subpoena Not a ‘Claim’ When Issued in Litigation Not Involving Insured’s Professional Services
• Massachusetts SJC: E&O Insurers May Allow Insureds to Veto Settlement, But Settlement-Related Duties to Claimants Remain
• Nebraska Supreme Court Rules Professional Services Exclusion Not Applicable to Law Enforcement
• Claims Alleging Same Conduct Against Same Insured But Based on Different Specific Facts Not Related Under D&O Policy
• Coverage for Common Law Causes of Action Not Barred Under ERISA/Securities Law Exclusion

February 2020

• No Coverage for Lawsuit Seeking Recovery of Disputed Legal Fees
• Delaware Adopts Larger Settlement Rule
• Notice Prejudice Rule Not Applicable to Claims-Made-And-Reported Policies
• Ransomware Attack Involves “Direct Physical Loss of or Damage to” Software, Data and Computer Systems
• Court Holds Insurer Cannot Allocate Settlement Between Covered and Non-Covered Claims
• Untimely Reservation of Rights Estops Insurer from Denying Coverage
• Retroactive Date Bars Coverage for Underlying Discrimination Action

January 2020

• Lawsuit Arising Out of Three Design Errors is a Single “Claim,” and Prior Knowledge and Prior Notice Provisions Bar Coverage
• Ill. Ruling Clarifies Wrongful Incarceration Insurance Triggers
• No Coverage for Claim Made During Initial Policy Period but Reported During Renewal Policy Period
• Concealment of Pending Lawsuits in Renewal Application Voids Policy
• “May” and “Might” are Sufficiently Clear and Unambiguous to Support Rescission Claim
• Obligation to Timely Report Claim Applies Even if Claim Appears to Have Been Abandoned
• Exclusion for Violation of Consumer Protection Laws Does Not Bar Coverage for Alleged Violation of Landlord-Tenant Law
• Insurer Must Advance Defense Costs as Incurred and Cannot Enforce Policy’s Defense Arrangement Consent Provision