AMHA Denied Insurance Coverage For Pending Lawsuit

AMHA received a letter on June 29, 2009 from Cincinnati Insurance Company, which holds the Association's Directors and Officers coverage. A recent court order required that AMHA be added as a defendant in the Hazelwood lawsuit. With that order, we took the opportunity to request another decision on coverage. Our request for coverage has again been denied.
 
Cincinnati states, "We have carefully reviewed the materials provided and continue to believe that no coverage is available under the policy for this lawsuit. Specifically section 1.B.8 excludes coverage for any claim made against the insured which is brought by or on the behalf of an insured (except for wrongful termination of employment or claims for discrimination or sexual harassment brought by an employee or former employee). The policy defines the term 'insured' as including any person who has been elected director or trustee, or duly elected or appointed officer of the association. While Ms Hazelwood is no longer a board member, she is a former board member and accordingly is an insured and no coverage is available."