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Sunday, July 23, 2017

MICHAEL ABBOUD VS. NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA A-3434-14T1

MICHAEL ABBOUD VS. NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA
A-3434-14T1
The court affirms the trial court's summary judgment dismissal of plaintiff's claim for coverage under a directors and officers (D&O) liability policy. The insurer properly denied coverage under the policy's "insured vs. insured" exclusion, which generally bars D&O coverage for claims by one insured director or officer against another. The court discerns no ambiguity in the exclusion, and finds no merit in plaintiff's arguments that (1) a showing of collusion between the insureds
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is required to invoke the exclusion, and (2) the exclusion should not be enforced because it would violate his reasonable expectations.