Insurer Needn't Pay $5M For Loan Fraud Loss, 6th Circ. Says

Law360, Los Angeles (May 18, 2017, 6:43 PM EDT) -- The Sixth Circuit on Thursday ruled that Cumis Insurance Society Inc. doesn't have to pay $5 million under a fidelity bond to cover losses that a credit union suffered from an officer's fraudulent loan scheme, upholding the insurer's trial win before an Ohio federal court.

In a split decision, a three-judge panel of the appeals court said that Cumis has no coverage obligations under the bond issued to the Cleveland-area St. Paul Croatian Federal Credit Union because the institution's board of directors had become aware of...
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Case Title

National Credit Union Admin. v. Cumis Insurance Society Inc.


Case Number

16-3140

Court

Appellate - 6th Circuit

Nature of Suit

4190 Contract: Other

Date Filed

February 18, 2016

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