Pioneer Industries v. Hartford Fire Insurance Company, Nos. 09-3002/3072
United States Court of Appeals, Eighth Circuit
Type of Case: Insurance Coverage
Practice Area(s): Insurance
Office(s): Minneapolis
Date: Apr 11 2011
Meagher & Geer represented Hartford Fire Insurance Company (Hartford) in this complex insurance coverage litigation regarding a dispute over commercial crime insurance that Hartford issued to Pioneer Industries. After Pioneer’s chief financial officer died, Pioneer discovered that he had embezzled more than $500,000 from the company during the eleven years prior to his death. While investigating the claim, Hartford discovered that the same CFO had made numerous misrepresentations on several applications for crime coverage during the time that Hartford insured Pioneer. Hartford rescinded coverage on the basis that the misrepresentation increased its risk of loss under the crime insurance, and the district court agreed. On appeal the Eighth Circuit affirmed the application and scope of the Minnesota statute as argued by Hartford, and affirmed that Hartford could rescind coverage as a result of misrepresentations without having to demonstrate “but for” causation.
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