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.

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