Chubb Owes Bank No Coverage For $17M Fraud, 7th Circ. Says

Law360, New York (April 5, 2013, 6:19 PM EDT) -- The Seventh Circuit ruled Friday that a Chubb Corp. unit does not have to defend a Bankmanagers Corp. unit in a suit over a $17.4 million fraud perpetrated by a former president of headphone maker Koss Corp., saying the bank's insurance policy clearly excluded thefts that occurred outside of company property.

In affirming a Wisconsin district court's decision, a three-judge appeals panel found that Federal Insurance Co.'s community bank bond didn't provide coverage to Park Bank because the Koss theft was committed off of bank premises....
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