World Surveillance Group Inc (fka WSGI)

[ColeThornton]

Here you go serious1...

"Consequently, pursuant to Section VII.C. of the Policy, Admiral will treat the SEC investigation as an interrelated Claim first made during the 2005-06 Policy, like the Class Action. As such, a single $250,000 retention and a single $5 million limit applies to both the SEC investigation and the Class Action."

Furthermore...

"Admiral's contractual obligation to pay Loss (inclusive of Costs of Defense) incurred by the Globetel Insureds in connection with the Class Action and the SEC Investigation shall end when the 2005-06 Policy limit has been exhausted by payment of Loss. Costs of Defense are part of the Loss and, as such, are subject to the limit of liability."

The legal costs are also running on the meter!

The Insurance Co. is telling them it will be over...

Admiral's contractual obligation to pay Loss (inclusive of Costs of Defense) incurred by the Globetel Insureds in connection with the Class Action and the SEC Investigation shall end when the 2005-06 Policy limit has been exhausted by payment of Loss.


LIKE I SAID... AN "ALARMING" RATE!

and the question remains...

What happens to a company that does not have the funds to pay their SEC fines?