Company Receiver Urges Appeals Court to Revive Insurance Suit

A receiver for a specialized motorcycle and motor vehicle dealer urged a federal appeals court to revive its case against Texas Insurance Co., arguing a directors and officers liability policy allowed him to step into the company’s shoes.

Empirical Prime LLC’s receiver Brent King adequately alleged complaints from former customer against the company that would trigger insurance coverage, Chris Dove of Hunter Law Group, representing King, said during oral arguments Wednesday before the US Court of Appeals for the Eighth Circuit.

One section of the D&O policy gives the receiver standing to seek coverage directly on behalf of the company, ...