Law360, New York ( August 15, 2016, 11:06 AM EDT) -- Among the most frequently recurring directors and officers insurance coverage issues is the question of the carrier's obligation to pay for costs incurred in connection with an informal U.S. Securities and Exchange Commission investigation. Indeed over the years, numerous policy revisions have been adopted in various forms by various carriers to address certain aspects of this issue. Yet the issues continue to arise, as shown most recently in District of Colorado Judge Robert E. Blackburn's Aug. 4, 2016, opinion in MusclePharm Corp. v. Liberty Insurance Underwriters Inc., in which he held that the D&O policy at issue did not provide coverage for the insured company's expenses incurred in responding to an informal SEC investigation. The opinion raises a number of issues, as discussed below....