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Panel Remands Issue Of Whether Provisions Cover Alleged Unauthorized Transfers

Mealey's (August 1, 2016, 2:02 PM EDT) -- PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeals on July 29 affirmed a lower federal court’s finding that there is no coverage owed under an insurance policy’s “computer fraud” provision for any transfers to a payroll company that were authorized by the insured, but remanded for the lower court to determine whether the policy’s “computer fraud” or “funds transfer fraud” provisions cover the purported unauthorized transfers totaling $11,991.89 in a coverage dispute arising from unpaid federal payroll taxes (Pestmaster Services, Inc. v. Travelers Casualty...
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