The jailed Texas financier R. Allen Stanford and three of his former executives have racked up millions of dollars in legal fees which have thus far been covered by an insurance policy. But Lloyd’s of London is now trying to turn off the financial spigot by having the policy voided.

Mr. Stanford and the ex-executives have sued Lloyd’s, The Associated Press reported.

The question of whether the insurer will continue paying is in the hands of United States District Court Judge Nancy Atlas, who is holding a hearing in an effort to resolve who will pay the legal bills.

Lloyd’s says the policy doesn’t pay on charges of money laundering, one of the many counts Mr. Stanford and ex-executives, Laura Pendergest-Holt, Gilbert Lopez and Mark Kuhrt, face in a federal indictment.

But the financier and his ex-employees say they are not guilty and that Lloyd’s should honor the policy, which will pay up to $100 million.

On Tuesday, Judge Atlas said that Ms. Pendergest-Holt has settled with Lloyd’s, The Houston Chronicle reported.