Without criminal warrant, does policy cover fraud?
Thompson & Ward Leasing Company, an auto leasing business, held a business insurance policy with Cincinnati Insurance Company. The policy included coverage for losses arising out of title problems with vehicles acquired by Thompson & Ward. This case involved two automobile purchase transactions between Thompson & Ward and a motor vehicle dealer, Beverly Hills Auto Collection (“BHAC”). According to a Thompson & Ward employee, BHAC contacted Thompson & Ward regarding proposed leases for two Porsches. Thompson & Ward obtained credit information, secured lease financing, and entered into lease contracts with the lessees. It then paid BHAC for the two automobiles, financed for $90,897 and $102,921, respectively. If the transaction had gone as planned, BHAC would have provided Thompson & Ward with the necessary paperwork to obtain title on behalf of the financial institution, and the financial institution funding the leases would have reimbursed Thompson & Ward for the purchase price of both
