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Cadaret, Grant & Co.: U.S. District Court finds No Coverage under Financial Institution Bond for Registered Representative’s Selling Away Ponzi Scheme

In the recent decision of Cadaret, Grant & Co. v. Great American Insurance Co., the U.S. District Court for the Eastern District of New York applied the “direct loss” requirement of coverage, the ownership condition and the legal liability exclusion to find no coverage under a Financial Institution Bond in respect of a registered representative’s … Continued

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Gore, Kilpatrick & Dambrino PLLC: U.S. District Court finds No Social Engineering Fraud Coverage in Phony Debt Collection Fraud

On March 31, 2026 the U.S. District Court for the Northern District of Mississippi released its decision in Gore, Kilpatrick & Dambrino PLLC v. Spinnaker Ins. Co.  The Court interpreted the requirements of a Social Engineering Fraud (SEF) insuring agreement in a cyber policy in the context of a phony debt collection fraud perpetrated on … Continued

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Westlake Chemical: Texas Court of Appeals applies Authorized Representative Exclusion in finding No Coverage under Crime Policy for Phony Invoicing Scheme

On May 25, 2023, the Texas Court of Appeals released its decision in Westlake Chemical Corporation v. Berkley Regional Insurance Company.  The Court affirmed the District Court’s summary judgment in favour of the insurers on the basis that the Authorized Representative Exclusion applied.  The Court’s decision is notable in finding that the exclusion does not require … Continued

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Cachet Financial Services: U.S. District Court finds No Coverage under Commercial Crime Policy for Alleged ACH Kiting and Related Frauds

In the recent decision of Cachet Financial Services v. Berkley Insurance Company, the United States District Court for the Central District of California found no coverage under a commercial crime policy in respect of several alleged frauds involving a payroll processor. The decision is instructive for fidelity claims professionals as to the meaning of “alteration” in … Continued

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Star Title Partners: Eleventh Circuit finds No Coverage for Social Engineering Fraud Loss under Cybercrime Endorsement to Cyber Protection Policy

On September 6, 2022, the Eleventh Circuit Court of Appeals released its decision in Star Title Partners of Palm Harbor, LLC v. Illinois Union Insurance Company.  In deciding that a social engineering fraud (SEF) loss did not fall within the coverage afforded under a Deceptive Transfer Fraud insuring clause, the Court construed the terms “employee,” “customer,” … Continued

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Mississippi Silicon: Fifth Circuit finds No Coverage for Social Engineering Fraud Loss under Crime Policy’s Computer Fraud Coverage

On February 4, 2021, the Fifth Circuit Court of Appeals released its decision in Mississippi Silicon Holdings, LLC v. AXIS Insurance Company. In affirming the lower court’s grant of summary judgment in favour of AXIS, the Fifth Circuit made important findings regarding the proper scope of the Computer Fraud coverage; whether a fraudster’s opening of a … Continued

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C.S. McCrossan Inc.: Eighth Circuit applies Crime Policy’s Authorized Representative Exclusion in finding No Coverage for loss caused by Insured’s Property Manager’s Employee

On August 6, 2019 the Eighth Circuit Court of Appeals released its decision in C.S. McCrossan Inc. v. Federal Insurance Company.  The decision addresses a host of coverage issues, including the application of the “Authorized Representative” exclusion and the definitions of “Subsidiary” and “Contractual Independent Contractor.”  The case is instructive for fidelity claims and underwriting professionals, … Continued

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