Section 9.37 Deliberate Dishonesty Exclusion

• Library: Insurance Practice 2015

Coverage is typically excluded for any claims arising out of, based on, or attributable to active and deliberately fraudulent or dishonest acts. Courts have held that the adjudication of “dishonest” conduct must be made in the underlying action. E.g., Atl. Permanent Fed. Sav. & Loan Ass’n v. Am. Cas. Co. of Reading, Pa., 839 F.2d 212, 216–17 (4^th Cir. 1988); Nat’l Union Fire Ins. Co. of Pittsburgh, Pa. v. Brown, 787 F. Supp. 1424 (S.D. Fla. 1991). But it has also been held that the insurer will not be...