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American Casualty Company verses Baker
This is regarding the recent legal case of American Casualty Co. v Baker (Continued)
..All in all, Pacific bought 5 directors' as well as officers' liability insurance firm policies which were in effect between 1980 and 1988. The initial policy covering 1980 through 1983 was issued by MGIC Indemnity Corporation. The second was in place between 1983 and 1985 and was also issued by MGIC. The last three policies were issued by CNA and included an exclusion for claims made by regulatory agencies (see Note 6 below). CNA subsequently bought MGIC's directors' and officers' business and assumed responsibility for expired plus cancelled MGIC policies.5 (For purposes of conven¬ience the policies are collectively referred to as CNA's policies.) Each of the policies included 'discovery coverage' and entitled Pacific to advance notice of cancellation or a refusal to renew the said policy.
The 'discovery coverage' provided Pacific with the right to buy the particular insurance in question for literally 'any claim or claims ... made against the Directors and/or Officers during the period of 12 months following the date of suchlike ... refusal to renew, but only with respect to [acts] committed before the date of such ... non-renewal'. The CNA policies also included a 'Notice of Claims' clause which brought in the pertaining portion:
If during the policy period [Pacific] ... becomes aware of any specific occurrence which might eventually give rise to a claim being made against the Directors and Officers ... and shall during such period, give written notice as it were to the insurer as soon as practicable and before (a lot of legalize jargon here obviously) to the date of termination of the policy.
By the way, More information at the Regional News Blog
The Regional News Blog
4 The Financial Institutions Reform, Recovery and Enforcement Act of 1989,('FIRREA') was designed to address the financial crisis precipitated by the collapse of numerous, thrift Institutions across the United States. The FIRREA re-tooled the regulatory agencies responsible for overseeing the operation of thrift institutions. As part of this re-tooling, the RTC assumed responsibility for prosecuting many lawsuits initiated by other federal agencies, such as the FSLIC. See 'Regulation of Savings Associations under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989', (1990) 45 Bus. Law. 1013.
5 With respect to the first MGIC policy covering 1980-1983, a Rescission Agreement was executed between CNA and MGIC's successor in interest eliminating CNA's liability for claims in existence under the assumed policy. The Rescission Agreement was enforced by the American Casualty v. Baker court, thus eliminating any liability on the part of CNA under the 1980-1983 policy.
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Aaron Wilmont is an author and researcher in the fields of
human and pet health. For more info. go to
http://www.dog-food-nutrition.com/
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11/25/2008, 9:24 pm
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