Insured v. Insured clauses in D&O policies under Greek law


D&O policies often exclude from cover certain claims on the basis of standard wordings so as at adequately quantify the risks to be underwritten and subsequently ceded by the primary insurer to the reinsurer. An exclusion often met in said policies is the insured v. insured clause that specifically carves-out of cover direct or indirect claims among the persons insured. This clause has been historically drafter to limit the risks undertaken by the insurer in the event that the claim is collusive and the underlying goal of the claimant is to cover losses of the corporation for imprudent business decisions, i.e. mismanagement. However, it is often the case that such clauses are limited to claims within the US territory, while the insurer relies on statutory law to be released of its liability under the policy in the event of a collusive claim. Although Greek case-law has not dealt with such clauses, the extent of cover could be limited under Greek law either on the basis of the definition of the legal term of a „third party claim” or on the basis of the intentional provocation of the risk insured. As regards the legal nature of the clause itself and its effectiveness under Greek law to release the insurer of such liabilities, this relies on whether the wording has been drafter to carve back claims which cannot be attributed to the solicitation of the person insured, thereby implying a post-contractual duty of the person insured