December 2004

• Insurer Allowed to Rescind Policy Based on Attorney’s Material Misrepresentations in Application
• Policyholder Conduct at Mediation Did Not Breach Cooperation Clause
• Each Insurer Held Proportionally Liable in Conflict Between Concurrent Insurance Policies
• Default Judgment Is Final Judgment for Purposes of Dishonesty Exclusion
• Contractual Liability Exclusion Bars Coverage for Claim Arising out of Asset Purchase Agreement
• Coverage under Public Officials Policy Barred Based on Prior Knowledge Exclusion
• Pollution Exclusion Bars Coverage for Suit Alleging Corporate Reorganization Designed to Avoid Paying Pollution Liabilities
• Maintenance of Insurance Exclusion Applies to Insured’s Failure to Maintain Clients’ Insurance
• Insurer Must Defend and Indemnify Directors Because of Exception to I v. I Exclusion
• Other Decisions of Note
• The Danger of Playing with House Money: The Case against Collusion between D&O Insureds and Shareholder Claimants

November 2004

• Excess Insurer Not Bound by Primary Insurer’s Coverage Determination
• Insurer’s Failure to Cite to Policy Exclusion in Reservation of Rights Letter Does Not Waive Coverage Defense
• I v. I Exclusion Does Not Bar Coverage for ERISA Breach of Fiduciary Duty Claims Where Fund Trustee Was Plaintiff in Underlying Action
• D&O Insurer Must Advance Defense Costs if There Is Reasonable Potential for Coverage
• “Other Insurance” Clauses Are Inapplicable Where Policies Do Not Cover Same Loss
• Court Denies Equitable Subrogation Recovery Against Another Insurer
• Insurer Misconduct with Respect to Two Claims Insufficient for Cause of Action under Connecticut Unfair Insurance Practices Act
• Insurer Allowed to Rescind Policy Based on Attorney’s Material Misrepresentations in Application
• Wiley Rein & Fielding Publishes Updated Foreign Corrupt Practices Act Handbook
• Other Decisions of Note

October 2004

• Other Decisions of Note
• Provision Prohibiting Insureds from Altering Medical Records Upheld
• Suit against Two Physicians Constitutes One “Loss Event”
• Court Upholds Application of Retroactive Date
• Policy Provides Coverage for Claim Made During Extended Reporting Period
• Insurer Cannot Allocate Defense Costs When It Fails to Defend Insured
• Legal Malpractice Insurer Precluded from Denying Coverage Based on Late Notice
• D&O Proceeds Not Part of Bankruptcy Estate Where Policy and Discovery Periods Expire without Securities Claim Being Tendered
• I v. I Exclusion Bars Coverage for Litigation Brought by Successor Corporation Created Pursuant to Bankruptcy Reorganization
• Settlement Requiring Disgorgement of Funds Does Not Constitute “Loss”

September 2004

• Other Decisions of Note
• Suit Involving Rescision and Coverage Issues Held to Be Non-Core
• Dishonesty Exclusion Deemed Ambiguous
• Customer’s Refusal to Make Payments Led to Claim
• Pending Litigation Exclusion Bars Coverage for Arbitration
• Delaware Court Rules I v. I Exclusion Inapplicable to Claims Brought by Creditors Committee
• New Jersey High Court Applies Reasonable Expectations Doctrine
• Realtor’s Failure to Disclose Settlement Costs Constitutes “Professional Services”
• Damages Award of Increased Merger Consideration Is Uninsurable
• I v. I Exclusion Bars Coverage for Claims Brought by State Insurance Commissioner

August 2004

• Other Decisions of Note
• No Coverage for Suit Filed after Claims-Made Policy Expired
• I v. I Exclusion Does Not Bar Coverage for Claim against CFO; Court Addresses Allocation
• Reliance on Marketing Brochures Unreasonable
• Suit Concerning Corporate Spin-Off Is Not a “Securities Claim”
• Insurer Not Required to Defend Suit “Related” to Previous Suit that Exhausted Policy Limits
• Professional Liability Policy Is Excess to General Business Policy
• Endorsement Raising Aggregate Limit for Acts Occurring after Date of Endorsement Does Not Convert Policy to Occurrence-Based Policy
• Personal Profit Exclusion Bars Coverage for All Directors and Officers Where CEO Found Liable

July 2004

• Single Limit of Liability for Physicians with Same Patient
• Promissory Note Contingent on Insurance Recovery May Be “Loss”
• Coverage Barred for Claim Arising before Policy Period
• Delayed Notice Absolves Insurer
• I v. I Exclusion Inapplicable to Action by Debtor-in-Possession
• Fiduciary Policy Does Not Cover Amounts Paid to Establish and Fund Employee Accounts
• Other Decisions of Note
• Court Applies Exclusions for Diminution in Property Value, Abuse of Process and Malicious Prosecution
• Prior Notice by Bank of Lawsuit Precludes Coverage
• Court Applies Securities Exclusion to Coverage under E & O Policy

June 2004

• Declaratory Action to Determine Coverage before Litigation of Underlying Action Is Not Ripe
• Other Decisions of Note
• WRF Insurance Practice and Attorneys Recognized as Leaders
• Court Certifies Whether Insurer Can Deny Coverage for Claims Made Hours after Policy Expired
• Court: D&O Policy Covers Constructive Discharge Claim Premised on Existence of Employment Contract
• Court Narrowly Interprets Breach of Contract and Prior or Pending Litigation Exclusions
• Sixth Circuit Holds Public Officials Policy Affords Entity Coverage
• Officer Entitled to Coverage under D&O Policy When Sued as Shareholder

May 2004

• Court Rejects Argument that EPL Policy Unambiguously Precludes Coverage for Bodily Injury
• Claim against Excess Insurer Not Ripe Where Insolvent Primary Insurer’s Liability Not Yet Established
• District Court Declines to Withdraw Reference to Bankruptcy Court for Coverage Litigation Concerning I v. I Exclusion
• Amended Complaint Is Claim “First Made” When Original Complaint Was Filed
• Other Decisions of Note
• Allegations in Original Complaint Irrelevant to Determining Duty to Defend under Amended Complaint
• Proceeds of D&O Policies Not Part of Bankruptcy Estate
• SEC Investigation Is “Claim,” but Cost of Complying with SEC Order Is Not “Loss”
• No Prejudice Required to Deny Coverage for Late Notice under Claims-Made and Reported Policy

April 2004

• Rescission Limited to Individuals Who Made Knowing Misstatements in the Application
• Insurers Must Advance Defense Costs under Unilaterally Rescinded D&O Policy
• I v. I Exclusion Bars Coverage for Former Directors’ Suit
• D&O Policy Proceeds Are Not Property of Estate Where Indemnification Has Not Occurred
• Four Suits Concerning Sale of Same Investments Are Separate Claims
• Texas Law Applicable to Coverage Dispute
• Business Enterprise Exclusion Does Not Bar Coverage
• Coverage Not Barred for Failure to Warn of Future Danger
• Whether Insured Is Aware of Potential Claim Is Factual Question
• Litigator Joins WRF’s Expanding Insurance Practice
• Third Party Payments Do Not Constitute Loss under Crime Policy
• Insurer Must Provide Separate Counsel to Town Board Members
• Excess Insurer Did Not Act in Bad Faith by Disclaiming Coverage Based on a Professional Liability Exclusion

March 2004

• Professional Services Exclusion in General Liability Policies Bars Coverage
• Policy Proceeds Property of Estate When D&Os Assign Their Rights to Debtor
• Pollution Exclusion Bars Coverage for Securities and Derivative Actions
• District Court Finds No Coverage Based on Prior Acts Exclusion
• City’s Liability Policies Provide Civil Rights Violations Coverage
• No Federal Question Jurisdiction for Suit Seeking Coverage for Liability under Section 16(b)
• No Duty to Defend Dentist Accused of Sexual Assault
• Class Action Plaintiffs Not Permitted to Intervene in Coverage Action
• Single Limit Applies, Claims Are Related and Insurer May Advance under Mutual Fund Policy Despite Receivership Order
• Improper Billing Is Not a Professional Service
• Attorneys Fees Constitute Monetary Judgment
• Insurer Must Advance Defense Costs Despite Rescission of Policies
• Single Lawsuit Constitutes Five Claims under Policy

February 2004

• No Coverage for Claim Based on Prior Acts that Insured Could Reasonably Foresee Would Result in Claim
• Insurer Can Challenge Reasonableness of Settlement Even if It Refuses to Defend or Indemnify
• WRF Continues to Expand Its Insurance Practice
• Parties in Shareholder Lawsuit Enjoined from Collecting on D&O Policy
• Legal Fees for Pursuit of Cross-Claim Are “Defense Costs” under Policy
• Absent Duty to Defend, Insurer Does Not Have to Determine Coverage Until after Judgment or Settlement
• Loss of Jury Verdict Does Not Automatically Create Foreseeable Claim
• Collateral Consequences Cannot Be Used to Justify Reasonableness
• Court Holds Insurer Properly Rescinded D&O Policy Based on Intentional Misrepresentations

January 2004

• E&O Policies Cover School Board-Policyholder in Sexual Abuse Case
• Court Refuses to Apply I v. I Exclusion Where Officers Who Provided Information to Plaintiffs Did Not Do So to Obtain an “Economic Benefit”
• WRF Announces New Insurance Partners
• New York Public Policy Mandates Right to Purchase Extended Reporting Period Coverage
• Insurer Has Duty to Defend Attorney in Suit Alleging Negligent Failure to Obtain Bankruptcy Discharge of Attorney’s Pre-Petition Fees
• Insurer Has a Duty to Defend Law Firm in Suits by Two Other Firms Regarding Referral Fee Arrangement
• Intentional Acts Exclusion Bars Coverage for Fraud; Insurer Did Not Waive Exclusion by Omitting from Initial Denial
• “Non-Insurance Contracts” and “Securities Broker/Dealer” Exclusions Held Ambiguous as Applied to Viatical Agreements
• Texas Appellate Court Applies “Eight Corners” Rule
• Arbitration Panel Has Authority to Award Policyholder Amount in Excess of Arbitration Claim
• Selling Viatical Agreements Does Not Constitute the “Business of Insurance” under Insurance Agency’s E&O Policy
• Prior Notice Exclusion Bars Coverage Where Notice of Claim Given under Prior Policy