Philadelphia Indemnity had also issued a set of claims-made management liability policies covering directors and officers as well as employment practices. Unlike occurrence-based policies, claims-made coverage is triggered when a claim is actually filed rather than when the underlying events occurred, meaning those policies could in theory have responded to lawsuits filed years after the fact. The court acknowledged as much. But those policies contained an exclusion for claims arising from dishonest, fraudulent, or criminal acts where a final judgment had established the insured’s liability. Because the consent judgment against Darlington encompassed precisely that kind of conduct — fraud, concealment, and criminal wrongdoing – the exclusion applied across the board, regardless of how the individual claims had been framed.
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