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Insight

2025 Financial Lines Executive Liability Newsletter听

By Alliant

Navigating today鈥檚 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.

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鈥橲 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 鈥淧RIVACY EVENT鈥 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鈥橲 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鈥橲 SETTLEMENT AUTHORITY AND DISCRETION OVER AN INSURED鈥橲 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鈥橲 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鈥 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 搂 533 鈥 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鈥橲 REGULATORY CLAIMS ENDORSEMENT COVERAGE IS SUBJECT TO A RETENTION
  • NEVADA鈥橲 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 鈥淢EANINGFUL LINKAGE鈥 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鈥橲 BROAD APPLICATION OF A BREACH OF CONTRACT EXCLUSION IN QUI TAM ACTION
  • DELAWARE鈥橲 CONTROVERSIAL AMENDMENTS TO ITS CORPORATE LAW PASSED BY STATE SENATE IN RESPONSE TO CONCERNS OVER 鈥淒EXIT鈥
  • INSURERS AVOID COVERAGE BASED ON 鈥淐HANGES IN EXPOSURE鈥 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鈥橲 RELATED WRONGFUL ACTS EXCLUSION BARS COVERAGE
  • FIFTH CIRCUIT鈥橲 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 鈥淏UMP-UP PROVISION鈥 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. 缅北视频 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 缅北视频 for a referral. This document is provided on an 鈥渁s is鈥 basis without any warranty of any kind. 缅北视频 disclaims any liability for any loss or damage from reliance on this document.

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