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Notice-of-Circumstances Provisions in Claims-Made Policies
As insurers under D&O policies respond to the claims activity likely to be generated by the subprime mortgage crisis, they should consider whether their policyholders are complying with notice provisions commonly found in 'claims-made' policies dealing with notice of potential claims and the submission of claims outside of the current policy period. This easily overlooked issue has potentially serious consequences for an insurer ' affecting the scope of its coverage obligations and the exposure of its limits. In coverage litigation, courts have often found that policyholders who fail to comply with these 'notice-of-circumstances' clauses are not entitled to coverage.
Generally, D&O, bankers' liability, and other claims-made insurance covers the liability of professionals to third parties only for claims that are both made (against the insured) and reported (to the insurer) in the same policy period. A limited exception to this rule, however, is carved out by notice-of-circumstances clauses typically found in claims-made policies. These clauses enable policyholders to obtain coverage for claims made against them after the policy's expiration but only if, before the policy period ends, they notify the insurer in writing of specific facts and circumstances they reasonably expect to lead, after the expiration of the insurance, to a claim against them. As to subsequently-made claims which actually do arise from the circumstances of which the insured notified the insurer, notice-of-circumstances provisions essentially enable insureds to keep any policy limit remaining on their expiring coverage in place during the succeeding policy period. Clearly, in the wake of the subprime crisis, policyholders with subprime exposures may seek to give notice of circumstances regarding their activities that may give rise to claims.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?
Coverage Issues Stemming from Dry Cleaner Contamination Suits
In recent years, there has been a growing number of dry cleaners claiming to be "organic," "green," or "eco-friendly." While that may be true with respect to some, many dry cleaners continue to use a cleaning method involving the use of a solvent called perchloroethylene, commonly known as perc. And, there seems to be an increasing number of lawsuits stemming from environmental problems associated with historic dry cleaning operations utilizing this chemical.