HNRK Coverage Corner
On May 9, 2024, Judge Theodore C. Zayner of the California Superior Court for the County of Santa Clara issued a decision in Zoom Video Communications, Inc. v. Underwriters at Lloyd’s London, Case No. 22-CV-398878, holding that a civil investigative demand (“CID”) from the Federal Trade Commission (“FTC”) did not constitute a covered “Claim” under an errors and omissions policy issued to Zoom.
Responding to a government investigation can be a costly proposition. The attorneys’ fees and other expenses incurred to comply with a grand jury subpoena or a civil ...
On May 9, 2024, Judge Rennie of the Delaware Superior Court issued a decision in Origis USA LLC v. Great Am. Ins. Co., Case No. N23C-07-102, holding that an insured’s coverage action against its D&O insurers was premature in light of the policy’s “No Action” clause.
The insured’s primary policy (to which three excess insurers followed form) states:
With respect to any Liability Coverage Part, no action shall be taken against the Insurer unless, as a condition precedent thereto, there has been full compliance with all the terms of this Policy, and until the Insured’s
As policyholder counsel, we’re predisposed to look at insurers with a jaundiced eye. So, we were pleased to read reports that Chubb—the insurer for Baltimore’s Francis Scott Key Bridge, which collapsed on March 26—is preparing to make a prompt $350 million payment to the State of Maryland.
Where coverage and a loss far exceeding the coverage limits are clear, there is no good faith reason to delay payment. Good to see an insurer doing the right thing.
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Recent Posts
- Brad Nash and Milan Sova Author Article in ABA Journal on Wildfire Coverage and Occurrence Disputes
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- “Related Acts” and the Claims Made Policy—The Policy Provision that “Cannot Be Applied Literally”
- California Court Rules that FTC’s Civil Investigative Demand is Not a Covered Claim Under Technology Errors and Omissions Policy
- Delaware Court Dismisses D&O Coverage Action as Premature Under Policy’s “No Action” Clause
- Chubb Prepares to Pay $350 Million to State of Maryland for Baltimore Bridge Collapse
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