Claims Related To A Broker's Bankruptcy: A Case Study
May 4, 2010, 12:23 PM EDT
Law360, New York (May 4, 2010, 12:23 PM EDT) -- The U.S. District Court for the District of Connecticut, applying Connecticut law, has held that coverage under a bankers professional liability policy was precluded by the policy’s insolvency exclusion where the underlying claims “arose out of” the bankruptcy of a third-party securities broker or dealer. Associated Community Bancorp Inc. v. The Travelers Cos., 2010 WL 1416842 (D. Conn. Apr. 8, 2010).
The court also held that coverage was barred by the professional services exclusion of the management liability coverage part of the policy.
Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.