Insurer Breached SunTrust Loan Coverage Pact: Judge

Law360, New York (April 27, 2011, 3:57 PM EDT) -- A Virginia federal judge ruled Tuesday that a United Guaranty Corp. unit breached an insurance contract by refusing to provide SunTrust Mortgage Inc. coverage for certain defaulted loans, while separately ordering SunTrust to make renewal premium payments.

U.S. District Judge Robert E. Payne granted SunTrust's motion in limine to preclude United Guaranty Residential Insurance Co. of North Carolina's introduction of parol evidence that the insurer claimed would clarify the parties' agreement over coverage for IOF Combo 100 loans, concluding that the contract unambiguously provided that United...
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