Progressive Can't Duck D&O Coverage For $8M Bad Loans Suit

Law360, New York (September 25, 2012, 11:59 AM EDT) -- A Michigan federal judge on Monday rejected Progressive Casualty Insurance Co.'s bid to get out of providing directors and officers coverage for Michigan Heritage Bank in an underlying suit alleging a former loan officer caused the bank to lose $8.2 million over bad loans.

In denying Progressive’s motion for summary judgment, Senior U.S. District Judge Bernard A. Friedman refused to declare outright that the directors and officers and company liability policy that Progressive issued to the bank did not cover its receiver the Federal Deposit Insurance...
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