Insurer Still On Hook For Post-Merger Coverage In BCB Row
By Rick Archer (September 20, 2017, 3:26 PM EDT) -- A New Jersey federal judge Monday found the dissolution of the original policyholder in a merger did not relieve Progressive Casualty Insurance Co. of the duty to defend the post-merger bank from a stockholder suit.
In an unpublished summary judgment, U.S. District Judge John Vasquez found that because BCB Bancorp and Pamrapo Bancorp merged under the terms of the New Jersey Business Corporation Act, the post-merger BCB inherited all of Pamrapo's contractual rights, including the right to a defense against the shareholder suit.
"Through the statutory merger, the policy and the rights under the policy transferred to BCB such that BCB...
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