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HM International, L.L.C. v. Twin City Fire Insurance Co.

Court: 5th Cir  09/02/2021  Fifth Circuit Holds D&O Policy Could Provide Coverage for Settlement Paid By Insured After Expiration of Limitations Period

The Fifth Circuit Court of Appeals held that settlement paid by insured financial services firm to client as a result of fraudulent wire transfer scheme could be covered under insured's D&O policy because it provided coverage for sums insured was "legally liable to pay" which could include contractual obligations, not just final judgments, and further held that a fact issue existed as to application of the policy's exclusion for "any services for or on behalf of others for a fee."

directors and officers policy, fraudulent wire transfer, claim, legally liable to pay, duty to indemnify, settlement, statute of limitations, services for a fee exclusion

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