The United States Court of Appeals for the Eighth Circuit, applying Missouri law, affirmed dismissal of a court-appointed receiver’s claims against an insurer seeking coverage for the receivership action, holding that the receiver’s demands for coverage did not constitute a “Claim” against an insured, nor did the receiver adequately allege covered “Loss.” King v. Tex. Ins. Co., 2026 WL 2197632 (8th Cir. July 30, 2026).
When the insured company defaulted on a loan, the lending bank initiated a receivership action against the bank. The court-appointed receiver then sent two letters to the insured’s D&O insurer seeking coverage for the receivership action. After the insurer denied coverage, the receiver brought suit alleging breach of contract and vexatious refusal to pay under Missouri law. The district court granted the insurer’s motion to dismiss and denied leave to amend.