Jenner & Block

Client Advisory: Warranty Letter Provides Basis to Reject D&O Defense Obligations, According to Tenth Circuit

In this client advisory, Partner Matthew L. Jacobs and Associate Daniel I. Weiner discuss a recent decision by the U.S. Court of Appeals for the Tenth Circuit, Rivelli v. Twin City Fire Insurance Co., which presents a cautionary tale for any prospective policyholders confronted with a request to sign a warranty letter.  In light of cases like Rivelli, the advisory says, a policyholder should, whenever possible, decline to sign a warranty letter.  Still, a warranty letter usually will not provide broad new grounds for an insurer to deny coverage, and the alert advises all policyholders to be aware of their rights under core principles of insurance law.