The United States District Court for the Northern District of Mississippi, applying Mississippi law, held that only a “Social Engineering Fraud” provision responded to a loss resulting when an unknown third-party, posing as the insured’s vendor, sent fraudulent banking information and the insured issued payments based on that information.  Miss. Silicon Holdings, LLC v. AXIS Ins. Co., 2020 WL 868874 (N.D. Miss. Feb. 21, 2020).  The court, holding that the policy provisions were unambiguous, rejected the insured’s argument that the policy’s “Computer Transfer Fraud” and “Funds Transfer Fraud” provisions should apply.

Continue Reading Lack of Knowledge Requirement Nixes Coverage for Social Engineering Fraud Under Computer Transfer or Funds Transfer Fraud Limits

The United States District Court for the Southern District of Mississippi has held that notice of an underlying accident sent to the insured’s three insurance carriers represented a timely “claim” under the claims-made general liability policies at issue in light of the insurers’ course of conduct upon receipt of the notice.  Jordan v. Maxfield & Oberton Holdings LLC, 2018 WL 1033318 (S.D. Miss. 2018).

Continue Reading Notice of Accident Constitutes Timely “Claim” Based on Insurers’ Conduct

The United States Court of Appeals for the Fifth Circuit, applying Mississippi law, has held that policies providing that defense costs erode policy limits are enforceable as written and do not offend public policy.  Federal Ins. Co. v. Singing River Health Sys., 2017 WL 816235 (5th Cir. Mar. 1, 2017).  The court further held that the policy’s Employee Benefits Law Exclusion barred coverage for a broad set of claims including those based on the federal and state constitutions and statutes.

Continue Reading Court Upholds Eroding Defense Expense Provision; ERISA Exclusion Bars Coverage for Constitutional and Statutory Civil Rights Claims

The United States District Court for the Southern District of Indiana, applying Mississippi law, has held that a bankers’ professional liability insurance policy did not cover a class action suit against a bank alleging that it wrongfully maximized overdraft fees charged to its customers.  Bancorpsouth, Inc. v. Federal Ins. Co., 2017 WL 373300 (S.D. Ind. Jan. 26, 2017).  The court also dismissed the bad faith claim made against the insurer because of the absence of coverage in the first instance.

Continue Reading Bankers’ Professional Liability Policy Excludes Overdraft Fee Litigation From Coverage

Applying Mississippi law, a federal district court has held that a participant in an employee stock ownership plan cannot pursue his claims against the insurer of the plan fiduciaries because those claims were previously released in a settlement agreement between the plan fiduciaries and the insurer. Sealey v. Beazley Ins. Co. Inc., et al., 2016 WL 4392624 (S.D. Miss. Aug. 17, 2016).
Continue Reading Employee Stock Ownership Plan Participant Cannot Pursue Fiduciary Breach and Bad Faith Claim Against Insurer of Plan’s Fiduciaries