MBIA et al. v. Royal Indemnity.(insurance fraud)

Publication: Corporate Counsel

Publication Date: 01-JAN-06

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COPYRIGHT 2006 American Lawyer Media L.P.

A federal appeals court has ruled that an insurer can't claim it was defrauded by a scandal-plagued student loan company. The decision by the U.S. Court of Appeals for the Third Circuit could leave the insurer, Royal Indemnity Co., on the hook for millions to banks that backed the loans by Student Finance Corporation (SFC). Exactly how much Royal may be forced to pay is still in question, however. On October 3 the unanimous three-judge appellate panel vacated a...

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