Insurance and the Subprime Credit Crisis

Enforcing and Defending Coverage After the Mortgage Meltdown

D&O, E&O and Pension Trust Liability Claims Soar

Recording of a 90-minute CLE webinar with Q&A


Conducted on Tuesday, April 29, 2008

Program Materials

Description

The insurance industry is experiencing the pain of the subprime mortgage crisis.

Financial analysts recently estimated up to $9 billion in D&O claims related losses. The Financial Times quoted a leading insurer's underwriter as saying, "There’s D&O and E&O exposure all over the place. Wherever someone had their fingers in the pie, someone’s going to get sued."

With the flood of subprime failure lawsuits rising daily, legal costs will be high and companies are looking to existing policies for coverage. Even if cases settle, the settlement amounts—and insurance claims—will be high.

The targets of litigation are many and varied: banks and other lenders but also all kinds of companies that made investments in the subprime market and all of their insurers.

Listen as our authoritative panel of insurance and financing attorneys examines the investigations and litigation, coverage issues in the subprime context, and strategies to enforce coverage of subprime-related losses under insurance policies.

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Outline

  1. Investigations, litigation and losses
    1. Investigations
    2. Litigation—who is suing who and for what losses
  2. Coverage issues in the subprime context—D&O
    1. Claims that may trigger coverage
    2. Definitions and key issues
    3. Exclusions and defenses
    4. Others
  3. Coverage issues in the subprime context—E&O
    1. Differences from D&O
    2. Claims that may trigger coverage
    3. Definitions and key issues
    4. Exclusions and defenses
  4. Coverage issues for other policies
    1. PTL
    2. CGL
  5. Strategies for coverage under insurance policies

Benefits

The panel reviewed these and other key questions: 

  • What are the coverage issues in the context of subprime losses for D&O and E&O?
  • Will preexisting insurance policies cover the claims being made over subprime losses?
  • What are policyholders' strategies to obtain coverage of subprime-related losses—and what arguments will insurers make against covering such losses?

Faculty

John N. Ellison
John N. Ellison
Partner
Reed Smith

He concentrates in the insurance coverage area on behalf of policyholders. He handles claims under directors and...  |  Read More

David H. Topol
David H. Topol
Partner
Wiley Rein

He counsels professional liability insurers in coverage matters and serves as coverage and monitoring counsel related...  |  Read More

Robert Stern
Robert Stern
Partner
O'Melveny & Myers

He is a litigator with extensive experience litigating major state and federal actions. He has particular experience in...  |  Read More