The Subprime Mortgage Crisis and D&O Insurance
A New Frontier of Litigation
The Insurance Coverage Law Bulletin
1/2008
Nancy Adams
The fallout from the virtual collapse of the subprime mortgage lending industry has just begun. Early estimates of subprime losses start at $100 billion and may rise to several times that amount. As the various participants in the subprime market - borrowers, originators, institutional investors, financial insitutions, hedge funds, underwriters, warehouse lenders, insurers, corporate investors, and the list goes on and on - continue to uncover the extent of their losses, the blame game among these participants is likely to be played out in courts across the country.
In this article, published in January 2008 in The Insurance Coverage Law Bulletin (an ALM Law Journal Newsletter), Mintz Levin attorney Nancy Adams analyzes the relevant provisions of D&O policies when directors, officers and corporations become the targets of litigation in the subprime context.
