D&O Coverage Excluded In $11M FDIC Suit, Progressive Says

Law360, New York (February 5, 2013, 5:53 PM EST) -- Progressive Casualty Insurance Co. on Monday sued the Federal Deposit Insurance Corp. and former executives of a failed Arizona bank, saying policy exclusions should bar it from covering the FDIC’s $11 million suit accusing the bank’s leaders of misconduct.

Progressive asked a federal court in Arizona to rule that an insured v. insured exclusion and a carve-out for loan losses in its directors and officers policy bar coverage for the underlying suit, which FDIC brought as receiver of the Community Bank of Arizona.

The FDIC claims...
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