Failed NC Bank Seeks D&O Coverage In $7M FDIC Suit

Law360, New York (June 21, 2012, 4:46 PM EDT) -- Directors of a failed Asheville, N.C., bank on Tuesday sued the Cincinnati Insurance Co. to cover them against a Federal Deposit Insurance Corp. lawsuit seeking almost $7 million, saying the insurer has incorrectly contended the policy had expired.

The six directors of the Bank of Asheville filed suit in federal court, asking a judge to force the insurer to honor a directors and officers policy to protect them in a negligence lawsuit filed by the FDIC.

The FDIC, which took over as the busted bank's receiver...
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