A New York judge refused to let an insurer off the hook for providing up to $40 million in coverage for a group of former officers sued by a creditors’ trust in the wake of the 2016 collapse and bankruptcy of brokerage firm RCA Capital Group LLC.
The ruling turned aside claims by Westchester Fire Insurance Co. that multiple layers of directors’ and officers’ coverage were barred by an “insured versus insured” exclusion that prevents a company from making up business losses caused by its own officers’ and directors’ actions.
