Another D&O Insurer Spurns GeoStar

Law360, New York (July 6, 2009, 12:00 AM EDT) -- Adding to GeoStar Corp.’s ample woes, Axis Reinsurance Corp. has filed suit claiming its excess directors and officers liability insurance policies are void and off-limits for GeoStar personnel accused of operating a fraudulent and ostensibly tax-deductible thoroughbred-horse breeding scheme.

The complaint, lodged Thursday in the U.S. District Court for the Eastern District of Michigan, claims GeoStar is not entitled to coverage under two successive $5 million excess D&O policies because the embattled oil and gas developer made material misrepresentations when applying for the policies.

The 2003...
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