Applying California law, a federal district court has held that a disciplinary proceeding initiated by a state insurance department against an insured life insurance agent is unambiguously subject to a regulatory action sublimit of liability.  Cerf v. Cont’l Cas. Co., Case No. 17-cv-07993-DSF-SS (C.D. Cal. Mar. 13, 2018).  Wiley Rein represented the insurer in this case.

Continue Reading Regulatory Action Sublimit Unambiguously Applies to State Disciplinary Proceeding Against Life Insurance Agent

The United States Court of Appeals for the Ninth Circuit, applying California law, has held that an insured v. insured exclusion in a directors and officers policy, which expressly barred coverage for actions brought by a “receiver,” precluded coverage for a claim against a failed bank’s directors and officers by the Federal Deposit Insurance Corporation (FDIC) in its capacity as receiver. FDIC v. BancInsure, Inc., 2017 WL 83489 (9th Cir. Jan. 10, 2017).

Continue Reading Insured v. Insured Exclusion Bars Coverage for Claim by FDIC Receiver Against Failed Bank’s Directors and Officers

A New York intermediate appellate court has held that a policy exclusion barring coverage in connection with claims “brought by or on behalf of . . . any federal [or] state . . . governmental entity, in such entity’s regulatory or official capacity” precludes coverage for a False Claims Act action pursued by a qui tam relator. Certain Underwriters at Lloyd’s, London Subscribing to Policy No. QK0903325 v. Huron Consulting Group, Inc., et al., No. 650339/11 (N.Y. App. Div. Apr. 30, 2015).
Continue Reading Regulatory Exclusion Bars Coverage for False Claims Act Action Pursued By Qui Tam Relator