Insurer Suffers Setback In $11.5M Ariz. Bank D&O Fight

Law360, New York (September 16, 2013, 4:29 PM EDT) -- A federal judge on Friday questioned Progressive Casualty Insurance Co.'s effort to avoid covering former executives of a failed Arizona bank who face Federal Deposit Insurance Corp. misconduct claims, this after the insurer's suit was branded a violation of bankruptcy law.

U.S. District Judge H. Russell Holland gave Progressive two weeks to show why eight former directors and officers of Community Bank of Arizona targeted by the FDIC should not be dismissed from the insurer's declaratory suit disputing the executives' defense and indemnity coverage.

In August, the...
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