Insurer Ducks Liability For Lending Co.'s Fraud Losses

Law360, New York (August 9, 2012, 7:12 PM EDT) -- A Florida federal judge ruled Thursday that U.S. Fire Insurance Co. does not have to cover losses that an insurance premium lender incurred from an employee's $7 million insurance financing fraud scheme.

U.S. District Judge Robert N. Scola said that a retroactive date rider provision on ABCO Premium Finance Inc.'s policy agreement excludes coverage for any fraudulent acts before April 2009, siding with the U.S. Fire's argument that the fraud scheme, which began in 2007, counted as a single loss that was not incurred in total...
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