Lloyd's Wants Taylor Bean Fraud Suit Coverage Nixed

Law360, New York (May 18, 2010, 7:16 PM EDT) -- Underwriters of Lloyd's of London and London Market Insurance Cos. are seeking to rescind coverage to bankrupt mortgage lender Taylor Bean & Whitaker Mortgage Corp. for losses stemming from the alleged fraud of former chairman Lee Farkas, who TBW believes stole more than $50 million from the company before it collapsed in 2009.

TBW should be denied coverage because they had knowledge of the fraud when they re-upped for insurance in 2007 and 2008 and did not disclose the information, according to a declaratory suit the...
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