ARNOLD F. SOCK, Attorney At Law Opines On: Insurer says BioChemics Not Covered For Securities and Exchange Commission Action
Axis Reinsurance Co. urged the U.S. First Circuit Court of Appeals to uphold a Massachusetts federal judge’s ruling that it doesn’t have to cover BioChemics Inc.’s costs to defend against a U.S. Securities and Exchange Commission enforcement action and subpoenas, saying the lower court properly found the claim predated the insurer’s policy.
In January 2015, U.S. District Judge Rya W. Zobel granted the insurance company’s motion for summary judgment, finding that because the SEC started its investigation of BioChemics via a nonpublic formal order in May 2011.
Policy coverage begins on the policy inception date, and not before, except if explicity stated.
Opinion by ARNOLD F. SOCK, Attorney at Law