‘Unrepaid Loan Carve-Out’ Does Not Bar Coverage For FDIC’s Suit, 9th Circuit Rules
Mealey's (October 21, 2016, 11:44 AM EDT) -- PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeals on Oct. 19 affirmed a federal court’s finding that a bank’s management liability insurance policy’s "unrepaid loan carve-out" does not bar coverage for damages sought by the Federal Deposit Insurance Corp. in an underlying lawsuit alleging tortious conduct by the bank’s directors and officers (St. Paul Mercury Insurance Co. v. Federal Deposit Insurance Corporation, No. 14-56830, 9th Cir.; 2016 U.S. App. LEXIS 18811).
(Opinion available. Document #13-161103-001Z.)
On March 12, 2013, St. Paul Mercury Insurance Co.,...