Replies to post #93466 on World Surveillance Group Inc (fka WSGI)

[Jetmek_03052]

Frank, yes...I was incorrect to say that

GTEM was operating without insurance for that time period.

OK?

After re-reading the document a little more closely....I agree with what you say has happened to date as far as the insurance covered and payments. Here is what I posted (RB) after reading the document in it's entirety:

"The doc is from the lawyers representing two Insurance companies

1. Admiral 2005-2006
2. Carolina 2007-2007

Admiral is going to pay the class action lawsuit monies and the SEC investigation expenses (after October 16 2006) because it was a claim first made on their policy for the 2005-2006 period. The expenses PRIOR TO that date (in regards to the SEC Investigation expenses) probably wouldn't be paid because GTEM didn't notify Admiral that there WAS an SEC investigation until AFTER that date. There is a $5MM limit on all payments: $2.3 MM has already been settled upon as the class action suit figure. This leaves an additional 2.7 MM available to be used (for any claims made during the time the policy was in force (May 17th 2005 to May 17th 2006).

Carolina Insurance compamny issued a policy on May 17th, 2006 (A corporatae directors and officers liability policy). In the renewal policy application, a series of questions were asked of the GTEM officers, many of them in regards to whether or not any investigation of the company had taken place or was taking place. All were emphatically answered NO.

Becasue of these falsehoods, Carolina is refusing to pay any expenses incurred during the SEC investigation: They also make a statement that in the event ANY coverage is pursued by GTEM, they reserve the right to RESCIND the entire policy due to GTEMS failure to disclose the existence of the SEC investigation."

I would have posted it here last night but I had no posts left!

It seems as if you are ignoring the fact that GTEM expressly lied while renewing this policy. You are focusing on the fact that the verbage says the insurance company "reserves the right" to rescind the policy in hopes that it might not happen.

The fact of the matter is that this wouldn't even be an issue, if GTEM had told the truth when renwing the policy.

These are the FACTS Frank! You cannot get around them.

[ColeThornton]

Mr. Frank, I'm curious...

In your experience and in conversations with others...

Have you found that most Insurance companies are anxious to pay claims or that they try to do whatever they can not to?

Thanks