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Coverage Defenses and Disputes

Coverage Defenses and Disputes

(p.177) Chapter Nine Coverage Defenses and Disputes
Ensuring Corporate Misconduct
University of Chicago Press

This chapter, which examines the most common bases upon which Directors' and Officers' liability (D&O) insurers assert coverage defenses in shareholder litigation, reveals a loose correlation between coverage defenses and corporate wrongdoing. It explains that the insurer's coverage defenses seem strongest when the plaintiff's underlying claim is meritorious, and also suggests that insurers are likely to really press coverage defenses for fear of an adverse impact in the insurance market.

Keywords:   coverage defenses, shareholder litigation, corporate wrongdoing, plaintiff, insurance market

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