Because RealPage never held the funds at issue, National Union was within its rights to deny coverage of the stolen funds intended for RealPage's property manager clients. . . And because National Union's coverage was not exhausted, Beazley was also within its right to deny coverage under RealPage's excess policy." (Credit: Supermicro/Shutterstock) Because RealPage never held the funds at issue, National Union was within its rights to deny coverage of the stolen funds intended for RealPage's property manager clients. . . And because National Union's coverage was not exhausted, Beazley was also within its right to deny coverage under RealPage's excess policy." (Credit: Supermicro/Shutterstock)

The 5th U.S. Circuit Court of Appeals in New Orleans has affirmed a lower court's decision in finding that a commercial crime insurer was right in denying coverage in a multimillion-dollar loss in a phishing incident was proper because the insured never "held" the funds intended for its clients, nor did it control the funds designated for them.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Practice Management
HR Technology
Advisor Technology