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Fidelity Coverage Analysis Analysis of a fidelity claim will vary depending on whether it covers employee dishonesty or employee theft and based on the circumstances surrounding the fraudulent scheme perpetrated by the employee. 3d 512, 518 (D.N.J. 2015) (holding that kickbacks an employee received from a colluding vendor satisfied the employee theft insuring agreement but that padded amounts paid to the vendor for legitimate services due to the employee misconduct were not covered). Further, identifying the steps in the employee's scheme is necessary to determine whether a loss results directly from employee dishonesty or employee theft. However, issues can arise where a defalcating employee is involved in a kickback scheme containing a mix of legitimate and illegitimate services.24 Query what an insured loses if an employee retains a vendor that renders legitimate services to the insured at a fair price but pays a kickback to the employee for the procurement of the service contract. [Extracted from the article]

The article discusses court cases related to the insurance coverage litigation in the U.S. The legal cases mentioned in the article include, plaintiff Universal Mortgage Corp. versus defendant Wurttembergische Versigherung AG, petitioner Keene Corp. versus respondent Insurance Co. of North America, and plaintiff Laura Butler versus defendant Union Carbide Corp. The judgements taken by the U.S. courts in all these cases have been focused in the article.

The article focuses on the developments in insurance coverage litigation in the U.S. It notes that there have been many developments in the law that governs the resolution of insurance coverage disputes in a countrywide perspective. It identifies emerging case law which may be important to insurance coverage practitioners in the future. It addresses cases and judgments pertaining to insurance coverage disputes. Furthermore, it discusses important developments arising in the insurance industry such as fidelity bonds, commercial general liability (CGL) policies, and directors and officers (D & O) coverage.