First, the expense of defending the lawsuits will not be paid by insurance. They will be paid by the corporation. Second, Doc, the other officers, and the board will be protected by an indemnity agreement providing that their expenses and damages will be paid by the corporation.
In order to prove fraud in a civil case, the case would have to proceed to trial (unlikely) and would have to meet the heavy burden of proof for fraud. It is very unlikely that the corporation would let the cases go that far. A settlement short of trial would leave the issue of fraud undecided, and Doc would be indemnified.
The Pac Life deal will also help get Doc off the hook, though I would hope that Pac Life will take charge enough to make sure that Doc isn't given a platinum parachute, and that new management is required.