MBIA Inc. v. Federal Insurance

LORETTA A. PRESKA, Chief District Judge:

This insurance coverage dispute raises three issues arising out of financial regulators’ investigations into alleged accounting misstatements by appellee and cross-appellant MBIA, Inc., (“MBIA”) and related litigation. Based on these events, MBIA made claims under two $15 million director and officer (“D & 0”) insurance policies it had purchased from appellants and cross-appellees Federal Insurance Co. (“Federal”) and ACE American Insurance Co. (“ACE”). It sought coverage for costs associated with these claims as losses under the policies. Federal and…