Case Study: Federal Insurance Co. V. SafeNet

Law360, New York (November 23, 2011, 12:42 PM EST) -- A federal judge sitting in New York but applying Maryland law recently held that a directors and officers insurer is not required to provide insurance coverage because the policyholder breached the policy's consent-to-settle provision when it settled a securities class action without obtaining the carrier's prior approval. Federal Ins. Co. v. SafeNet, Inc. (S.D.N.Y. Sept. 9, 2011).

The opinion is noteworthy because the court found that the insurer did not waive its right to require consent to the settlement agreement when it notified the policyholder that...
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