Buried Treasure – Part Three

DO “BURIED TREASURES” EXIST?  Part Three of a Three Part Series Ascertaining Whether Buried Treasure Exists Requires a Five-Part Analysis These issues include: 1.       Did the company give notice to the insurers on risk as of the date of the first alleged “wrongful act” as well as all subsequent carriers and those at higher levels…

Advertisement

Directors & Officers Insurer Had To Pay For Damages Caused By A “Wrongful Act” Despite “Personal Profit” Exclusion And a Conviction

Wintermute v. Kansas Bankers Surety Co., 630 F.3d 1063, 1069 (8th Cir. (Mo.) 2011) (Arkansas law) Reversing district court, “personal profit” exclusion did not bar indemnity for a “loss” for a “wrongful act” because of “in-fact” language which required adjudication against insured despite the insured’s conviction for a criminal act.

Professional Service Exclusion Did Not Bar Coverage For Settlement Where Provision Of Credentialed Physicians Was Not Principal Service Provided By Blue Cross

Blue Cross of Idaho Health Serv., Inc. v. Atlantic Mut. Ins. Co., No. 1:09-CV-246-CWD, 2011 WL 162283, at *18-19 (D. Idaho Jan. 19, 2011)   Professional Service Exclusion Did Not Bar Coverage For Settlement Where Provision Of Credentialed Physicians Was Not Principal Service Provided By Blue Cross   The court found the “professional service” exclusion…