2020-10-15_GENERAL DOCUMENTS - C1980004 (2)

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Case 1:20-bk-12043 Doc 453 Filed 10/06/20 Entered 10/06/20 15:26A7 Desc Main Document Page 3 of 9 Persons to the fullest extent permitted by law. (Policy § IV(D)). Thus, Mr. Hughs must concede that his claim for Policy proceeds is a claim based on his right to indemnity. 5. Given the inescapable conclusion that Mr. Hughs' claim is premised on his right to indemnity from the debtor, the Policy coverage at issue here is quite clear. There are two corporate liability coverage parts that could arguably respond to Mr. Hughs' claim for indemnity. Specifically, the "Side B" coverage of the Policy provides: The Insurer shall pay on behalf of the Company Loss resulting from a Claim first made against the Insured Persons during the Policy Period for a Wrongful Act to the extent the Company is required or permitted to pay on behalf of the Insured Persons as indemnification. (Policy § I(B) (Insuring Agreements) (emphasis in original)). 6. Similarly, the Policy here offers a "Side E" coverage, which provides: The Insurer shall pay on behalf of the Company Defense Expenses incurred by the Insured Persons resulting from an Interview to the extent the Company is required or permitted to pay on behalf of the Insured Persons such Defense Expenses. (Policy § I(E) (Insuring Agreements) (emphasis in original)). 7. In the simplest terms, these two coverage parts apply where the "Company" is obligated to provide indemnity to a director or officer. Mr. Hughs' claims, if they are covered at all, can only be covered under Side B or Side E. The company is either "permitted or required" to indemnify him for his out of pocket costs complying with the various investigations. 8. The Policy provides additional coverage to the Debtors alone, in coverage part C. Part C provides: The Insurer shall pay on behalf of the Company Loss resulting solely from any Securities Claim first made against the Company during the Policy Period for a Wrongful Act. 3