2021 FLA Conference Schedule
Matthew C. Kalin, Travelers
Michael Keeley, Clark Hill PLC
Charles Armstrong, Clark Hill, PLC
Many times, the bad actors responsible for claims against a fidelity bond or crime policy are criminally prosecuted and convicted. As part of the criminal judgment, courts may issue restitution orders against the bad actors. This presentation will address the federal criminal restitution process, the fidelity insurer’s right to restitution, the enforcement of a federal restitution order, and ways that state law may impact the federal restitution process.
Keith Flanagan, Travelers
Ashley Gray, Hiscox
Ryan J. Weeks, Mills Paskert Divers
From ransomware to business email compromises, cyber criminals are launching attacks daily on all types of businesses. Who are the actors behind the attacks, how do they get into the business of extortion, how
many crime groups are out there, and how can organizations protect themselves from these threats? This presentation will walk through the crime groups that are launching these attacks, the economics associated
with them, and will take us out to many “dark” websites to see how the crime syndicates work.
Bill Hardin, Charles River Associates
Patricia A. Ricciuti, The Hartford
Adam P. Friedman, Chiesa Shahinian & Giantomasi PC
Despite clear policy wording, some courts fail to recognize that fidelity bonds and crime policies are indemnity policies, not liability policies, and find coverage for losses based on the insured’s vicarious liability for an employee’s tortious acts towards a third party. Courts similarly have found coverage for an employee’s conduct that unintentionally and indirectly causes damage to the insured, or for losses of third-party property neither held by the insured nor for which the insured was responsible before the loss occurred. This presentation will address how fidelity bonds and commercial crime policies are designed to cover direct first-party losses and limit coverage of losses for property not owned by the insured, and the impact that judicial interpretation of “direct loss” and “ownership” provisions have had on current fidelity claims.
Michael V. Branley, The Hartford
Scott S. Spearing, Hermes, Netburn, O’Connor & Spearing, P.C.
Peter C. Netburn, Hermes, Netburn, O’Connor & Spearing, P.C.
A threshold requirement to potential coverage under a fidelity policy, and one that may be taken for granted, is that the insured actually suffered a loss. Over time, the development and evolution of case law and the language used in fidelity policies created certain basic tenets when evaluating loss. For example, an actual, pecuniary loss – as opposed to a hypothetical or subjective loss to property the insured never owned or held – is typically a prerequisite to coverage. Despite the bedrock principle that the insured must suffer a loss to potentially implicate coverage, the term “loss” is almost universally undefined in fidelity policies. Therefore, numerous coverage issues have arisen – whether the insured actually suffered a loss, when the loss occurred, how to value such loss, and whether the loss resulted directly from the covered peril. In addition, the meaning of “loss” as addressed by a fidelity policy can be significantly different than “loss” as determined by an accountant following American Institute of Certified Public Accountants standards. This presentation will address the evaluation of loss from both a fidelity practitioner’s perspective and from an accounting perspective.
Joseph Collins, Great American Insurance Company
D.M. Studler, SDC CPAs, LLC
Justin D. Wear, Manier & Herod, P.C.
Money is transferred from bank to bank, domestically and internationally, at a staggering amount each day. This presentation will explain how such transfers have been, are, and perhaps will be accomplished, both in terms of the payment systems used and the communication methods that banks employ to facilitate the transfer. This presentation further addresses what exposures the various players in the process have with respect to money transfers, and the future of money transfers as more and more governments consider digital currencies.
Theresa Biedermann, Berkshire Hathaway
Joel T. Wiegert, Hinshaw & Culbertson
Christopher D. Blum, Hinshaw & Culbertson
This presentation will provide an overview of the most important fidelity cases decided between June 1, 2020, and June 1, 2021. Among the cases to be discussed are several important opinions that offer insight into the meaning of the phrase “resulting directly from”, as well as social engineering, computer fraud, and funds transfer fraud provisions.
Gabriel M. Speciale, QBE North America
Delaney L. Beier, Clark Hill PLC
Suggested dress for the conference is business casual.