You are a director of BigCorp Inc. Due to the botched acquisition of a major subsidiary, the plaintiff’s classaction bar is circling like a hungry shark. The fall in BigCorp’s stock price is the blood in the water. You get sued. Personally.

BigCorp refuses to indemnify you because of unresolved allegations of bad faith and self-dealing. Thank goodness you have the protection of the D&O liability insurance policy sold to you by the Really Big Insurance Group (RBIG). You ask them to pay your legal fees. They refuse to advance defense costs pending the final outcome of the matter.