Court ruled on a claim by an insured, Coop Fédérée, against two of its insurers for a loss caused by a phishing scheme which led to a fraudulent transfer of $4.9 million in August 2014. The question is if the insurance policy was “specific” for the risk of phishing fraud since the policy specifically covered fraud and embezzlement.
Interrelation between insurance policies covering the same loss
On December 14, 2016, the Quebec Superior Court handed down a judgement on a legal issue which has not come up often in Quebec case law, that of determining what legal framework applies to the relationship between two property insurers covering the same risk. This decision is very interesting since it provides useful information about the factors which guide the courts in determining whether a policy is specific or general. It also sheds some light on the interrelation between insurance policies covering the same loss.
Read more about the decision in court at Mondaq.