4th Circuit: Insurer Properly Denied Coverage Of Convicted Executive

4th Circuit: Insurer Properly Denied Coverage Of Convicted Executive

RICHMOND, Va. - Criminally convicted former Taylor Bean and Whitaker Mortgage Corp. (Taylor Bean) chairman Lee Bentley Farkas must repay the defenses fees the company's directors and officers (D&O) insurer advanced on his behalf, the Fourth Circuit U.S. Court of Appeals ruled April 11, agreeing with a lower court that Farkas' criminal conviction triggered the policy's "in fact" conduct exclusions, which then triggered the insurer's right to recoup the defense fees (Lee Bentley Farkas v. National Union Fire Insurance Co. of Pittsburgh, PA, No. 12-1481, 4th Cir.; 2013 U.S. App. LEXIS 7318).

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