Welcome to the Fall 2019 issue of the Insurance Coverage Law Report!
The issue begins with a "Feature" article on a possible "safe harbor" for insurers covering the cannabis industry. The second "Feature" article in the issue discusses a case dealing with a shareholder appraisal action that was considered a "securities claim" under a directors' and officers' liability policy. Our "Focus On" column explores "War"exclusions. And we have much more!
"Safe Harbor" for Cannabis Coverage
Landmark legislation recently introduced in both houses of the U.S. Congress would allow insurers "engaging in the business of insurance" in a state, local jurisdiction, or Indian nation where "the cultivation, production, manufacture, sale, transportation, display, dispensing, distribution, or purchase of cannabis" is legal to cover cannabis-related businesses without fear of federal criminal penalty or federal interference. If passed, federal legislation could yield a more robust insurance market for cannabis-related businesses. In our lead "Feature" article, "Bipartisan CLAIM Act Offers 'Safe Harbor' for Insurers Covering Cannabis Industry," Michael H. Sampson and Zachary S. Roman, attorneys at Reed Smith LLP, discuss the legislation.
Appraisal Action is a "Securities Claim"
The Delaware Superior Court recently held that the definition of "Securities Claim" in a directors' and officers' ("D&O") liability policy includes a shareholder appraisal action. In our next "Feature" article, "Delaware Trial Court Rules Appraisal Action is a 'Securities Claim' and Leaves Door Open to Order D&O Insurers to Pay Prejudgment Interest and Defense Costs Despite Lack of Insurer Consent," Lynda A. Bennett and Jason D. Meyers, attorneys at Lowenstein Sandler LLP, explain the decision, the potential consequences of which include that appraisal actions may be covered by D&O policies, prejudgment interest may be covered even if the basis for awarding the interest is not, and noncompliance with a consent clause in a D&O policy may not be fatal if the insurer was not prejudiced by delayed notice and/or lack of consent.
Focus On: 'War' Exclusions
What do "war" exclusions in insurance policies exclude? The U.S. Court of Appeals for the Ninth Circuit has issued an extensive decision analyzing these exclusions. It concluded that an insurance company could not rely on two "war" exclusions in its policy to deny coverage to its insured for damages the insured suffered after Hamas fired rockets from Gaza into Israel. In this issue's "Focus On" column, "'War' Exclusions," Steven A. Meyerowitz, Esq., the Editor-in-Chief of the Insurance Coverage Law Report and the Director of the Insurance Coverage Law Center, discusses the Ninth Circuit decision.
And More…
We also have the "best of the best" Case Law Analysis and Legislative/Regulatory Developments from the Insurance Coverage Law Center, as always written and analyzed by Steven A. Meyerowitz, and my Industry News column.
Enjoy the issue!
Victoria Prussen Spears
Editor, Insurance Coverage Law Report
Associate Director, Insurance Coverage Law Center
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].