California Insurance Code Section 533.5 Is ‘Unconstitutional,’ Insureds Argue In D&O Coverage Suit

Mealey's (May 22, 2020, 4:58 PM EDT) -- SAN FRANCISCO — Insureds recently asked the Ninth Circuit U.S. Court of Appeals to reverse a lower federal court’s ruling that held, under California Insurance Code Section 533.5, that a directors and officers liability insurer has no duty to defend or indemnify them against an underlying unfair competition and false advertising lawsuit brought by the California attorney general (Adir International LLC et al. v. Starr Indemnity and Liability Company, No. 19-56320, 9th Cir.)....