Executive Summary Blog

Executive Summary Blog

Legal developments affecting professional liability insurers

Tag Archives: Nevada

Court Rules that “Direct Means Direct” in Crime Policy, Rejecting Proximate Cause Analysis

Posted in Cyber Policies and Issues
A Nevada federal district court has applied the “direct means direct” rule to conclude that losses an insured suffered from payment card chargebacks when certain employees made fraudulent charges on customers’ payment cards were only the “indirect” result of employee theft, and therefore not covered under the insured’s commercial crime policy.  CP Food & Beverage,… Continue Reading

Second Circuit Affirms Judgment That Insured v. Insured Exclusion Bars Coverage After Jury Finds Plaintiff Was Duly Elected or Appointed as a Director

Posted in Insured v. Insured Exclusion
Applying both New York and Nevada law, the United States Court of Appeals for the Second Circuit has held that an insurer correctly denied coverage under its directors and officers liability policy based on the insured v. insured exclusion.  Intelligent Digital Sys. L.L.C. et al. v. Beazley Ins. Co., 2017 WL 4127540 (2d Cir. Sept.… Continue Reading

No Coverage for Lawyer’s Alleged Self-Dealing

Posted in Personal Profit/Advantage exclusion
The United States Court of Appeals for the Ninth Circuit has affirmed a decision in favor of an insurer, holding that the business enterprise and trust exclusions in a lawyers professional liability policy barred coverage for a suit alleging self-dealing by the insured attorney and his firm. Christensen v. Darwin Nat’l Assurance Co., No. 14-15914… Continue Reading