Do D&O insurers really need to conduct litigation and to intervene into proceedings as a third party?

Thursday, March 13, 2014 Veröffentlichungen

Article by Dr. Fabian Herdter in Versicherungspraxis 03/2014

In D&O insurance, the insurer is authorized to make use of intervention rights agreed upon in the contract. The insurer can take out-of-court settlement decisions at his own discretion and conduct the liability case according to his own ideas.

D&O insurers do though not only make use of their intervention rights according to the insurance contracts. Besides, they often intervene as a third party in the liability proceedings by joining the case in support of the (insured) manager.

The article highlights the fact that the D&O insurer’s possibilities to conduct litigation and to effectively associate with the insured in the defense do not constitute an – automatic – legitimate interest of the D&O insurer to intervene the proceedings as a third party.


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