Tag Archives: settlement

Does a Directors and Officers Insurance Policy Cover the Settlement of Criminal Charges?

Directors and Officers (“D&O”) insurance policies cover individuals and entities for a wide variety of claims for “wrongful acts.”  Many D&O policies provide coverage for claims based on criminal proceedings.  When criminal charges are settled against corporations and officers, very often the settlement includes fines, penalties, cost of investigation and other payments.  Are these payments … Continue Reading

The Peril of Settling Without Insurer Consent

In an earlier blog post we discussed a Georgia case where settlement occurred without consent from the insured.  In that case, the court held that when a policyholder settles without consent in the face of a consent to settle clause, the policyholder will not succeed in seeking a recovery for that settlement from the insurance … Continue Reading

Counterfactual Thought Experiments Do Not Establish Bad Faith in New York

The title above is taken from a quote found in a recent Second Circuit non-precedential summary order in an insurance bad faith case.  Bad faith is not easy to establish in New York.  Strategic differences between an insurance company and its insured over whether, how and when to settle an underlying case generally do not … Continue Reading

Fifth Circuit Decides That An Above-Limits Settlement Payment By An Insured Does Not Trigger Excess Coverage Unless The Primary Carrier Actually Pays Policy Limits

In a recent case, the United States Court of Appeals for the Fifth Circuit considered whether a below-limit payment by a primary insurance carrier could trigger excess insurance coverage in circumstances where the policyholder settled the underlying action for an amount far in excess of primary insurance policy limits. Martin Resource Mgmt. Corp. v. Axis Ins. … Continue Reading