AUS Canada

This article was written by Todd Picker, an Orange County Orange County Accident Attorney:
Regarding the recent insurance legal article by our expert Attorney:

A lawsuit to recover damages from Pacific’s directors and officers was ultimately filed in June 1989. According to the RTC, Pacific’s officers and directors were allegedly responsible for involving Pacific in a programme of high-risk com¬mercial and construction lending and investment which, while appearing profitable, in fact concealed losses. In addition, the directors and officers were apparently in¬volved in various improper loan, syndication and excessive compensation schemes. The wrongful conduct in question allegedly began in 1981 and continued through 1987, when a majority of Pacific’s directors resigned. The RTC con¬tended that the directors’ and officers’ conduct could not have been discovered until some time after June of 1987.
The claims asserted by the RTC against the directors and officers included breach of fiduciary duty, negligence and breach of contract. The loss occasioned by their conduct allegedly exceeded $70 million.
Pacific had purchased five directors’ and officers’ liability insurance policies which were in effect between 1980 and 1988. The first 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 purchased MGIC’s directors’ and officers’ business and assumed responsibility for expired and 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. Incidentially if you reside in Orange County or nearby areas and you require a leading Orange County accident Attorney then may I strongly suggest the Law Offices of Todd Picker as he is one of the best Orange County accident Attorney working right now, it seems to me.
This ‘discovery coverage’ provided Pacific with the right to purchase insurance for ‘any claim or claims … made against the Directors or Officers during the period of twelve calendar months after the date of such … 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 provided in relevant part:
If during the policy period [Pacific] … becomes aware of any occurrence which may subsequently give rise to a claim being made against the Directors and Officers … and shall during such period, give written notice thereof to the insurer as soon as practicable and prior to the date of termination of the policy,