RogerJ1 (Texas)
Posts: 550
Posts: 550
Posted:
Have you seen D&O insurance be rescinded/canceled because of a claim or because of extreme activity of a Board?
I am wondering because there has been unusual insurance activity for an association that may have tried to make a claim. In July 2022 a one year policy was purchase, but then in April 2023, *right after an event that could have triggered a claim occurred, there was another expenditure for a policy that was for even more than the policy bought in July 2022 that would have had over three months left on it. With over three months to go, I assume that was a new policy, as over three months seems too long to pay for a policy that would not start for over three months in a renewal.
Now in October 2023, in an upcoming Board meeting agenda, a new D&O policy will be discussed. That would be three different policies in 15 months.
*Events that could have triggered a claim. In the second failed attempt at an annual general meeting, the spouse of a board member disrupted the meeting, which led to strangers in the library, where the meeting was being held, calling 911, and police came to the meeting to investigate. The board member’s spouse was the sole suspect in the resulting police report. Later that night the spouse, via a subdivision-wide email, and his wife, the board member, on a social media site made false accusations about a member potentially damaging that member’s business and a private libel suit was filed against them a few weeks later. While a private lawsuit, unrelated directly with the association (email and social media statements outside the association activities), three other Board member during that period gave affidavits supporting the sued board member using their officer titles in the association, flirting with pulling the association into the private suit.
I am wondering because there has been unusual insurance activity for an association that may have tried to make a claim. In July 2022 a one year policy was purchase, but then in April 2023, *right after an event that could have triggered a claim occurred, there was another expenditure for a policy that was for even more than the policy bought in July 2022 that would have had over three months left on it. With over three months to go, I assume that was a new policy, as over three months seems too long to pay for a policy that would not start for over three months in a renewal.
Now in October 2023, in an upcoming Board meeting agenda, a new D&O policy will be discussed. That would be three different policies in 15 months.
*Events that could have triggered a claim. In the second failed attempt at an annual general meeting, the spouse of a board member disrupted the meeting, which led to strangers in the library, where the meeting was being held, calling 911, and police came to the meeting to investigate. The board member’s spouse was the sole suspect in the resulting police report. Later that night the spouse, via a subdivision-wide email, and his wife, the board member, on a social media site made false accusations about a member potentially damaging that member’s business and a private libel suit was filed against them a few weeks later. While a private lawsuit, unrelated directly with the association (email and social media statements outside the association activities), three other Board member during that period gave affidavits supporting the sued board member using their officer titles in the association, flirting with pulling the association into the private suit.