Executive Summary Blog

Executive Summary Blog

Legal developments affecting professional liability insurers

Tag Archives: Michigan

Fraudulent Instruction Loss Caused by Social Engineering Scheme Does Not Trigger Computer Fraud Coverage Under Commercial Crime Policy

Posted in Cyber Policies and Issues
A Michigan federal district court has held that a fraudulent instruction loss caused by a social engineering scheme did not constitute a “direct loss” that was “directly caused by computer fraud” and therefore did not trigger computer fraud coverage under a commercial crime policy.  American Tooling Ctr., Inc. v. Travelers Cas. & Sur. Co. of… Continue Reading

Insured Versus Insured Exclusion Bars Coverage for Claim by Liquidating Trust

Posted in Bankruptcy, Insured v. Insured Exclusion
The United States Court of Appeals for the Sixth Circuit, applying Michigan law, has held that an insured vs. insured exclusion bars coverage for a claim against an insured company’s former officers assigned during bankruptcy to a liquidating trust. Indian Harbor Ins. Co. v. Zucker, 2017 WL 2641085 (6th Cir. June 20, 2017).… Continue Reading

Excess Insurer’s Unambiguous Consent-to-Settlement Provision Bars Coverage

Posted in Consent to settle/incur defense costs, Excess insurance/exhaustion
The United States Court of Appeals for the Sixth Circuit, applying Michigan law, has held that a policy provision requiring an excess insurer’s written consent before entering into a settlement was not ambiguous and therefore barred coverage under the excess policy.  Stryker v. National Union Fire Ins., 2016 WL 6818853 (6th Cir. Nov. 18, 2016).… Continue Reading

Prior Knowledge Precludes Coverage Where Undisclosed “Events Bore the Seeds of a Malpractice Claim” Against Insured Lawyer

Posted in Prior Knowledge/Warranty Exclusion
The United States Court of Appeals for the Sixth Circuit, applying Michigan law, has held that an insured attorney’s failure to disclose a potential claim on her renewal application precluded coverage for a later filed suit. Thomson v. Hartford Cas. Ins. Co., 2016 WL 4036403 (6th Cir. July 28, 2016).… Continue Reading