First, Banc Insure argued that the jury verdict didn’t constitute a “direct” loss under the terms of the bond, because the case essentially involved a third-party (and not first-party) claim.
This blog is about insurance coverage, but insurance coverage is usually the Alamo – the last stand.
It’s amazing to me that Nigerian banker scams continue to appear in my inbox every now and then.
After all these years, businesspeople apparently continue to fall for them.
Avon possessed Froseth’s and Imdieke’s funds by a lawful title.
Carlson solicited the money from Froseth and Imdieke, represented that Avon would be handling the money, obtained checks made payable to Avon, deposited the checks into Avon’s accounts, and wired the money out of Avon’s accounts.” Third, Banc Insure argued that Avon’s liability didn’t “directly” result from Carlson’s fraudulent acts.
It’s great that Avon was able to enforce coverage under the bond, but what went wrong here at an operations level? First example: The idea that a corporate officer couldn’t recognize a garden-variety advance money scheme is frightening.