LORETTA A. PRESKA, Chief District Judge:
This insurance coverage dispute raises three issues arising out of financial regulators' investigations into alleged accounting misstatements by appellee and cross-appellant MBIA, Inc., ("MBIA") and related litigation. Based on these events, MBIA made claims under two $15 million director and officer ("D & O") insurance policies it had purchased from appellants and cross-appellees Federal Insurance Co.
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