2019 FLA Conference Schedule

7:30 a.m. – 8:45 a.m.
Registration and Continental Breakfast

8:30 a.m. – 8:45 a.m.
Welcome
Robert Olausen, President, The Fidelity Law Association

8:45 a.m. – 9:30 a.m.
Schemes and Scams: Common Coverage Issues Arising From Fraudulent Invoicing and Kickback Claims
Fidelity claims involving sophisticated frauds give rise to coverage issues that do not generally arise in straightforward embezzlement schemes. This presentation will examine some of the challenges that fraudulent invoicing and kickback claims present for claims professionals. Topics will include the application of the “manifest intent” requirement, the differing results yielded by theft and dishonesty forms and frequently- encountered exclusions. The presenters also will address how these losses should be quantified.
Anne Juntunen, Lerners LLP
Kenneth West, Chubb

9:30 a.m. – 10:05 a.m.
Public Official Blanket Bonds and Government Employee Crime Coverage Forms

Statutorily required public officials bonds have long been the primary instrument provided to protect public entities and their constituencies against breaches of the public officials’ duties of office. State legislatures have begun to loosen bonding requirements to allow for the fulfillment of bonding requirements through traditional fidelity bonds and government crime insurance policies. Therefore, insurers, governmental entities, and courts have turned to the evaluation of what is covered under these bonds and policies. This presentation will address recent history and evolution of these fidelity insurance products, the coverage provisions, triggering standard of intent, and other issues that govern claims under fidelity bonds and government crime insurance policies.
Jeffrey S. Price, Manier & Herod
H. Michael Westen, Travelers


10:05 a.m. – 10:20 a.m.
Honoring Founding Officers, Advisors, and Editors

This year marks the FLA’s 25th program, as well as the publication of its 25th Journal. As such, it is appropriate to pay a brief tribute to the FLA’s founding officers and advisors, and to the editors who have made the Journal a success.
Armen Shahinian, Chiesa Shahinian & Giantomasi PC


10:20 a.m. – 10:30 a.m.
MORNING BREAK

10:30 a.m. – 11:00 a.m.

Eight Commandments of Interpreting Commercial Insurance Policies (With Sub-Commandments)

Fidelity insurance policies are contracts, and as such should be interpreted according to well-settled rules of interpretation. But fidelity insurance underwriting and claims also involve circumstances and considerations that differ from standard, mass-marketed insurance, involving sophisticated parties who both participated in the negotiation of policy terms. Such circumstances and considerations affect how—and whether—these rules of interpretation should be applied. This presentation will review the rules of insurance policy interpretation, focusing upon the fair and reasonable interpretation of policies of fidelity insurance that are the subject of arms-length dealing among sophisticated parties.
Adam P. Friedman, Chiesa Shahinian & Giantomasi PC
Robyn L. Sondak, Travelers


11:00 a.m. – 12:00 a.m.

Current Cyber Threats and Trends

The FBI is the lead federal agency in the United States for investigating cyberattacks by criminals, overseas adversaries, and terrorists. The threat is incredibly serious—and growing. Cyber intrusions are becoming more commonplace, more dangerous, and more sophisticated. Our nation’s critical infrastructure is targeted by adversaries, American companies are targeted for sensitive corporate data, and citizens are targeted by fraudsters and identity thieves. The FBI is in the middle of the battle to combat such pervasive and evolving cyber threats. Supervisory Special Agent Russell will provide an overview of various recent cyber incidents and schemes and the actors responsible for them. His presentation will include a brief overview of the dark web and its impact on various cyber issues.
Timothy Russell, Supervisory Special Agent, Criminal Cyber Squad,
FBI


12:00 p.m. – 1:45 p.m.
LUNCH BREAK (on your own)

1:45 p.m. – 2:10 p.m.

Fidelity Law Update 2019

This presentation will provide a brief overview of the most important fidelity cases that were decided between June 1, 2018 and June 1, 2019. Among the cases to be discussed are several important opinions that offer insight into the meaning of the phrase “resulting directly from” and concerning the termination provision.
Adam Brinkley, Clark Hill Strasburger
Sarah Gurka-Major, Berkley FinSecure


2:10 p.m. – 2:55 p.m.
Apportioning the Loss: A Liability and Recovery Analysis for Email-Based Claims

In the typical social engineering case, the insured wire transfers money to a fraudster’s bank account instead of its vendor’s bank account. Most insureds have social engineering coverage for this risk, but there are other avenues of recovery for the insured and the insurer as subrogee. These recovery sources include: (1) the vendor or other party whose information was used by the fraudster to send the email(s) at issue; (2) the technology service providers for both the insured and the vendor; (3) the banks that sent/received the wire transfers at issue; and (4) other insurers that may have issued overlapping coverages. This presentation will focus on the theories of liability and allocation of the loss among these parties, with an emphasis on both legal theories of recovery and practical considerations.
Katherine Musbach, Gordon Rees Scully Mansukahni LLP
Reina Dorvilier, Beazley Group


2:55 p.m. – 3:15 p.m.
BREAK / ANNIVERSARY CAKE CELEBRATION

3:15 p.m. – 3:40 p.m.

Not-So-Easy Riders: When Disputes Arise Over The Interplay Between Riders and Other Policy Provisions

Riders are often attached to fidelity and crime products in order to add coverage, decrease the scope of exclusions, or remove other limitations on an insured’s right to recover. What happens, however, when the interplay between a rider and a policy provision that it does not explicitly amend is unclear? The presentation will explore the types of disputes that can arise in such situations and how courts have addressed them in connection with fidelity and crime products as well as other types of insurance policies in analogous circumstances.
Michael A. Graziano, Eckert Seamans Cherin & Mellott,
LLC

John Christenson, CUNA Mutual Group


3:40 p.m. – 4:00 p.m.

Fidelity Law Trivia Game

Test your knowledge of the fidelity and cyber law landscape with an entertaining interlude of some polling and thought bubble trivia games. Audience participation is key! All you need is your smartphone. Instructions to follow at the conference.
Tracey Santor, Travelers
CharCretia V. Di Bartolo, Watt, Tieder, Hoffar & Fitzgerald, L.L.P

4:00 p.m. – 5:00 p.m.

Panel Discussion: Evolution of Fidelity Law and Practice Over
the Course of the Past 25 Years

This panel truly brings together a “Who’s Who” in the fidelity industry, including well- known and experienced company heads of claim, savvy underwriters, experienced claims counsel, and industry experts from the SFAA and ISO. A tremendous amount has occurred in the industry over the last 25 years, since the FLA’s first program in 1995. This panel will address not only the most important changes, but also current trends and the outlook for the future. Among other topics, the panel will review how technology and evolving criminal schemes have sometimes led courts to misconstrue the intended scope of coverage, thus leading to changes in policy forms, the impact of multiple financial crises and regulatory action, as well as the most significant changes to the standard bond forms and the reasons for them. The panel will also address more recent issues dealing with social engineering, computer fraud and cybercrime, including the impact cyber coverage generally has had upon fidelity claims and underwriting.

Moderator
Armen Shahinian, Chiesa Shahinian &
Giantomasi, PC

Panelists
Gary A. Valeriano, Anderson McPharlin & Conners LLP
Dolores A. Parr, Zurich
Hilary R. Hoffman, Chubb
Megan M. Manogue, Berkley FinSecure
Robert M. Flowers, Travelers
William E. Heinbokel, The Surety &
Fidelity Association of America

Robert Olausen, ISO


5:00 p.m. – 5:05 p.m.
Celebratory Send-off
Matthew C. Kalin, Travelers
Michael Keeley, Clark Hill Strasburger

5:05 p.m. – 5:15 p.m.
Closing Remarks

Robert Olausen,
President, The Fidelity Law Association

Suggested dress for the conference is business casual.

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