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No insurance coverage for largest credit union failure in U.S. history

In a recent case, insurance coverage for employee fraud depended on what the board of directors knew and when. Read what the court ruled and why.

By Steven A. Meyerowitz, Esq., Director, FC&S Legal | Updated on May 26, 2017

This story is reprinted with permission from FC&&S Legal, the industry’s only comprehensive digital resource designed for insurance coverage law professionals. Visit the website to subscribe.

The U.S. Court of Appeals for the Sixth Circuit has ruled that a fidelity bond did not cover losses arising from actions by the former chief operating officer of Cleveland, Ohio-based St. Paul Croatian Federal Credit Union, which led to the largest credit union failure in U.S. history.

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