Baker

The Resolution Trust Corporation and the former directors and officers of the insolvent Pacific Savings Bank appeal the district court’s summary judgment that no insurance coverage is available under policies issued by American Casualty Company and its predecessors. American Casualty appeals the district court’s order requiring it to advance defense costs incurred by the directors and officers in a lawsuit with the RTC until a final determination of coverage under the policies. We affirm the district court’s conclusion that no coverage exists under the policies and dismiss as moot the insurer’s appeal of the advancement order.

I.

In February 1989, federal regulators declared Pacific Savings Bank insolvent. The Federal Deposit Insurance Corporation, seeking to recover investment losses of more than $70 million by the bank, filed suit in district court against Pacific’s directors and officers (the “Directors/Officers”), alleging negligence, breach of fiduciary duty, and breach of contract. 1 American Casualty Company of Reading, Pennsylvania, the issuer of Pacific’s several directors’ and officers’ insurance policies (“D & 0 policies”), subsequently sought a declaratory…