Article Archives >> Lead Stories >> January 16-February 15, 2010
Preview of Article:
Insurance Coverage Denied
After False Answer on Application
Claims “arising out of” required information
are excluded by terms of D & O policy
The failure to notify an insurance carrier that a nonprofit had settled a claim with the Internal Revenue Service over its tax-exempt status has given an insurance company the basis to deny coverage for litigation “arising out of” disputed efforts to comply with the settlement order. The policy specifically excluded claims arising out of facts required to be disclosed in answer to certain questions on the application, one of which asked whether the organization had settled a claim with the United States. (Gluck v. Executive Risk Indemnity, E.D. NY, No. CV-07-4562, 1/22/10.)
Article Archives >> Lead Stories >> January 16-February 15, 2010
What our readers say about Nonprofit Issues
Once again you've tackled a tricky question and explained it so we all can understand the issue.--M.V.
Thank you for your informative and keen advice on nonprofit matters. I believe its a unique and concise place to get answers to this often wispy area called nonprofit. --R.T.
