NU Online News Service, Nov. 17, 8:51 am EST
CHICAGO--Bernard Madoff could not be convinced to buy professional liability insurance for his investment services, but legal requirements did force him to purchase a fidelity bond, a specialty broker revealed at an industry conference.
Christopher Cavallaro, managing director for ARC Excess and Surplus, a Garden City, N.Y.-based wholesale broker, said that although he pushed for a professional liability insurance sale "each and every year," Mr. Madoff only wanted a financial institution bond.
The institution bond has been rescinded by the carrier, leaving more unanswered questions about coverage than a fidelity bond might otherwise provide, he said.
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