By Josh Liberatore (August 1, 2022, 1:55 PM EDT) — Pacific Premier Bank isn’t entitled to coverage of several underlying suits alleging it helped keep a Ponzi scheme afloat by offering ill-advised lines of credit, a Zurich unit told a California federal court, pointing to a policy exclusion for lending acts.
In a motion to dismiss Friday, Zurich American Insurance Co. said a lending acts exclusion in a business liability policy clearly applies to three suits alleging Pacific Premier lent millions to American Equities Inc. despite having knowledge of the firm’s illicit activities.
Zurich said the underlying suits all allege that Pacific Premier issued lines of credit and loans to AEI…
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