Legal Affairs / General

Confusion over reinstatement value conditions

An insurer’s obligation to indemnify the insured does not arise until the insurer has elected whether to indemnify in money or by reinstatement. The election must be made within a reasonable time.

Bank held liable for the fraudulent conduct of a former director of its customer

A bank needs to ensure that a company has authorised its director to allow the company’s bank account to be debited each month, if the payments settle the director’s personal obligations.

Suicide not covered despite brain disease

D&O policy voided for non-disclosure

In the USA a directors and officers policy issued to a man who later pleaded guilty to selling $1.9 million in phony stock was voided for non-disclosure.