Insurer Seeks To Avoid Coverage For AFA Investor Claims

Law360, New York (October 18, 2011, 4:19 PM EDT) -- Endurance American Specialty Insurance Co. asked a California federal court Monday to allow it to rescind coverage for $14 million in investor claims against now-defunct AFA Financial Group LLC, saying AFA withheld relevant information, including its investments in a $485 million Ponzi scheme.

Endurance sought summary judgment on the three remaining arbitration claims in a coverage dispute with AFA. The litigation originally included coverage, under a professional liability policy, for 14 arbitration proceedings and one bankruptcy action against AFA, but Endurance and AFA settled their dispute...
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