D&O UNFAIR TRADE PRACTICES EXCLUSION HELD AMBIGUOUS …

… DOES NOT EXCLUDE "FRAUD-BASED CONSUMER-PROTECTION CLAIMS," ILLINOIS FEDERAL COURT HOLDS UNDER MINNESOTA LAW.

In Big Bridge Holdings, Inc. v. Twin City Fire Ins. Co., 132 F.Supp.3d 982 (N.D. Ill. 2015), the Federal District Court held that an "unfair trade practices exclusion" in a Directors and Officers Liability Policy was ambiguous under Minnesota law.  As a result, the exclusion did not bar all coverage for the underlying claims alleged against the policyholder, which the Court described "as fraud-based consumer-protection claims alleging deceptive (not anti-competitive) business practices."

Please Read The Disclaimer.  ©2016 by Dennis J. Wall, author of "Lender Force-Placed Insurance Practices" (American Bar Association 2015).  You are invited to visit the author's website.  All rights reserved.