The New York Insurance Department has long prided itself for being an activist state regulator for insurance business underwritten in the world’s financial capital. In a surprise development, the Insurance Department has waded into an area thought not to be an area of controversy or dispute: defense arrangements under D&O policies. It remains to be seen whether this first effort by the Insurance Department to more closely regulate D&O insurance contracts is indicative of further regulatory actions to come.

Click here to read a Client Advisory by Edwards Angell Palmer & Dodge about the ramifications of the Insurance Department's recent opinion letter.