5th Circ. Vacates Apache Win In $1.5M Fraud Coverage Fight

By Kat Sieniuc (October 19, 2016, 3:37 PM EDT) -- Great American Insurance Co. actually doesn't owe $1.5 million to Apache Corp. after fraudsters tricked it into rerouting vendor payments to a bogus bank account because the loss isn't covered under the insurance policy's computer-fraud provision, the Fifth Circuit said on Tuesday.

Great American had urged the three-judge panel to reverse a lower court decision that said it was liable for the oil and gas exploration company's losses, maintaining the incident isn't covered because the email containing instructions to change a vendor's payment information didn't "cause a transfer" of fraudulent funds, adding that coverage is "unambiguously limited" to losses from "hacking...

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