We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

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...
To view the full article, register now.




Case Information

Case Title

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

Case Number



Appellate - 6th Circuit

Nature of Suit

1190 Contract: Other

Date Filed

February 18, 2016

Law Firms

Government Agencies

Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.