Professional Liability—Fraudulent Acts
— Actual versus Constructive Fraud—Archived Article

Q

One of the exclusions under the lawyers professional liability form applies to any claim arising out of dishonest, fraudulent, criminal, or malicious acts of any insured. If an individual makes a claim against the insured based on allegations of fraudulent conduct by the insured, doesn't the exclusion preclude coverage? I would think so, but I have heard about some courts granting the insured coverage anyway. How could this happen?