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For directors and officers liability insurers facing a potential influx of claims arising from lawsuits that banking regulators are filing against their insureds, a key question is whether regulatory exclusions in their policies will hold up.

Such exclusions were pretty heavily litigated during the Savings & Loan crisis, according to Kevin LaCroix, a broker with OakBridge Insurance Services in Beachwood, Ohio, who also reported that the coverage cases were ultimately concluded in favor of insurers.

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