Timing of Notice Not a Factor in “As Reported” Exclusion
An insured corporation sued its insurer claiming breach of contract and breach of duty of good faith and fair dealing after it denied coverage for an underlying securities matter under a directors and officers (D & O) and entity liability insurance policy. The parties disputed the meaning of “as reported” as used in the insured’s Illinois National policy exclusion. Illinois National argued the provision excluded all notices that were reported to the other insurer (Chubb) at any time – which included the notice of the shareholder dispute. The insured argued that the exclusion only excluded those notices that had been reported at the time the Illinois National policy went into effect and not notice provided thereafter. Applying Indiana law, the Seventh Circuit found in favor of the insurer finding the “as reported” language in the policy precluded Illinois National’s coverage for the underlying lawsuit, because an exclusion covered all notices of claims reported to the insured’s other insurer at any time.