Fidelity Policies Appear Flexible In 6th Circ. Theft Ruling

Law360, New York (August 6, 2012, 8:51 PM EDT) -- The Sixth Circuit ruled Wednesday that Progressive Casualty Insurance Co. owed coverage under a fidelity policy to a bank holding company for an employee's theft from clients' brokerage accounts, boosting arguments that the traditional boundaries of these policies can be stretched to cover third-party claims, experts say.

In a 2-1 ruling, the appeals court sided with First Defiance Financial Corp. in a coverage dispute that arose after the company doled out nearly $1 million to reimburse customers who had their money stolen by a First Defiance...
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