Executive Summary Blog

Executive Summary Blog

Legal developments affecting professional liability insurers

Tag Archives: Connecticut

Insurer Breached Duty to Defend Where At Least One Allegation “Possibly” Constituted a Wrongful Act

Posted in Professional Services
The United States District Court for the District of Connecticut, applying Connecticut law, has granted summary judgment in favor of an insured, holding that an underlying complaint alleged at least one act that could “possibly” fall within the policy’s definition of “wrongful acts,” triggering a duty to defend.  Fernandez v. Zurich Am. Ins. Co., 2017… Continue Reading

Misappropriation of Funds Exclusion Precludes Coverage for Accounting Firm’s Erroneous Transfer of Client Funds to Third-Party Fraudsters

Posted in Uncategorized
A federal district court in Connecticut has granted an insurer’s motion to dismiss a breach of contract claim by an accounting firm, holding that the firm’s professional liability policy’s exclusion for theft, misappropriation, commingling, or conversion of funds precluded coverage for a claim against the insured for completing fraudulently requested transfers of funds.  Accounting Resources,… Continue Reading

Policy Rescinded And Voided Ab Initio For Failure to Disclose Professional Responsibility Grievance Investigation of Insured Officer

Posted in Rescission
Applying Connecticut law, a Connecticut federal court held that an insured’s E&O policy must be rescinded and voided ab initio after finding that the insured knowingly made misrepresentations regarding an investigation of one of its officers, which were material to the insurer’s decision to insure the applicant. Zurich Am. Ins. Co. v. Expedient Title, Inc.,… Continue Reading