Aspen Needn't Defend $40M Mortgage Suit, Judge Says

Law360, Los Angeles (July 15, 2013, 7:59 PM EDT) -- A Maryland federal judge found Monday that Aspen Specialty Insurance Co. had no duty to defend a Prosperity Mortgage Co. loan officer in a $40 million proposed class action over her alleged practice of inflating home estimates, falsifying documents and issuing fraudulent mortgages.

Aspen filed its motion for judgment on the pleadings in April, saying that a professional liability policy and fidelity bond issued by Aspen to Prosperity should be rescinded and declared void because of material misrepresentations made by the mortgage company in its applications....
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