Insurer Tries To Shake $20M Fremont Coverage Suit

Law360, New York (August 31, 2011, 8:09 PM EDT) -- Continental Insurance Co. sought summary judgment Wednesday in a California suit brought by Fremont Reorganizing Corp. seeking $20 million from its insurers to cover losses on loans purportedly signed by criminals perpetrating a mortgage fraud scheme.

Continental's excess insurance policy on a bond that Federal Insurance Co. issued to Fremont does not cover losses from those mortgages because the subprime lender sold 58 of the 59 loans at issue, so it no longer owns the covered property, the insurer contended in its motion for summary judgment....
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