|Post by Insurance Chair Pete Dworjanyn|
advance defense costs of a covered claim prior to the claim’s final disposition. The policy excluded coverage for claims made against the insured: [4(a)] arising out, based upon, or attributable to the gaining in fact of any profit or advantage to which Insured was not legally entitled; [and] …. [4(c)] arising out of, based upon, or attributable to the committing in fact of any criminal, fraudulent or dishonest act, or any willful violation of any statute, rule or law.” Farkas was indicted for bank, wire and securities fraud. When TBW entered bankruptcy, the bankruptcy court approved National Union expending up to $3 million in defense costs – $1 million for Farkas, and $1 million each for two other officers.