Insight and Intelligence on the London & International Insurance Markets

4 February 2012

Stanford shows fraud exclusion isn’t always enough

31 March 2010

The potential pitfalls of writing directors' and officers' (D&O) coverage for financial institutions have been highlighted once again in the fallout from the long-running Stanford coverage dispute.

Demonstrating that a fraud exclusion is not enough, US courts have ruled that Lloyd's and London market insurers that underwrote the $90mn+ policy for Stanford Financial Group (SFG) executives must pay-out on defence costs.

The US appeal judges rejected the London insurers challenge even though the insureds may be later found guilty of...

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