FDIC Beats Back OneBeacon Claims In $4.6M Coverage Suit

Law360, New York (July 11, 2012, 2:08 PM EDT) -- A federal judge on Tuesday tossed OneBeacon Midwest Insurance Co.’s counterclaims in the Federal Deposit Insurance Co.'s lawsuit seeking $4.6 million in coverage for losses related to allegedly fraudulent loans made by the former directors of a failed Illinois bank.

The judge dismissed as redundant OneBeacon’s claim that it doesn’t have to provide the coverage under a provision of a financial institution bond that excludes coverage for losses suffered in connection with a loan unless certain requirements are satisfied. OneBeacon alleged that those requirements are not...
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