Receiver May Claim Under D & O Policy For Alleged Breach of Duty by Directors
Court says claim is not excluded under insured-versus-insured exclusion
A court appointed receiver for a nonprofit community action program may claim breach of duty by two former officers and demand that the organization’s D & O insurance carrier make payment. A federal District Court in Rhode Island, reviewing conflicting cases in other jurisdictions, has held that the claim is not excluded by the “insured-versus-insured” exception contained in the policy.
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