The Nuances Of D&O Dishonesty Exclusions

Law360, New York (November 12, 2010, 1:26 PM EST) -- Directors and officers insurance policies typically exclude coverage for claims arising from situations where, inter alia, the insured knowingly is dishonest, engages in fraudulent behavior or willfully violates the law. Public policy supports the notion that a party should not be allowed to escape responsibility for liability stemming from his intentional acts, and most courts will enforce exclusions that clearly bar coverage for dishonest or willful conduct.

That said, such exclusions are subject to exceptions and nuances that can cause significant disputes, particularly relating to the...
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