Attorneys' Malpractice Policies: Regulatory Exclusions and Public Policy

Abstract

The courts have yet to decide the issue of the enforceability of provisions in legal malpractice insurance policies that specifically exclude from coverage claims made by government regulators such as the FDIC. The question has reached the courts with respect to such exclusionary provisions in directors' and officers' liability insurance policies, and here the courts are split. The author discusses the current case law and the statutory developments.