G-I HOLDINGS, INC.; SAMUEL J. HEYMAN, Appellants v. RELIANCE INSURANCE COMPANY; GREAT AMERICAN INSURANCE COMPANY; HARTFORD FIRE INSURANCE COMPANY; NEW YORK PROPERTY/CASUALTY INSURANCE SECURITY FUND; NEW JERSEY PROPERTY-LIABILITY INSURANCE GUARANTY ASSOCIATION; TWIN CITY FIRE INSURANCE COMPANY, 586 F.3d 247

Summary

The insured purchased from one insurance company a policy covering claims made against its directors and officers between July 1999 and July 2002. Shortly after the policy was issued, the insurance company encountered financial difficulties. In the summer of 2000, a second insurance company took over claims administration for the first insurance company. The insured sought coverage for three fraudulent conveyance suits against defendant officer. The instant court found that the insured provided no evidence to show that the process of acquiring a new policy from one insurer in response to the financial difficulties of a prior insurer was so standardized or driven by such determinate purposes that an insured could reasonably expect a specific relationship between the policy periods of the prior and new policies. The instant court also found that other agreements did not make the second insurance company directly liable for the fraudulent conveyance actions. Next, the instant court found...