Hartford Off Hook For Nonprofit’s $6.7M Madoff Losses

Law360, New York (July 5, 2011, 2:57 PM EDT) -- A health care nonprofit that invested $6.7 million in funds linked to Bernard L. Madoff's financial fraud can't recover its losses under its Hartford Fire Insurance Co. policy because its losses were indirect, a Louisiana federal judge ruled Friday.

U.S. District Judge Helen G. Berrigan said Methodist Health System Foundation Inc.'s losses weren't covered under several exclusions and provisions in its Hartford commercial crime policy, including a direct loss provision, trading loss exclusion and entrustment exclusion.

Between 2004 and 2007, Methodist Health invested $6.7 million in...
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