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Kennedy v. United States Liability Insurance Co.

Court: SD Tx  11/27/2024  Insured vs. Insured Exclusion Bars Coverage Under D&O Policy for Claims an Organization Brought Against Former Executives

A court of the Southern District of Texas granted an insurer's motion for summary judgment, holding an Insured Verses Insured Exclusion applied in connection with claims the non-profit organization brought against former executives and ruling against the executives' bad faith claim on the basis that bad faith claims cannot be raised on third-party claims and because the insurer's denial was reasonable.

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