An appellate court has ruled that a CNA Financial Corp. unit is not required to pay out an insurance policy to a real estate broker who suffered losses due to a cyber attack under the malicious code exclusion in its property, liability and crime policy.
The real estate broker argued that the loss was covered under the fraud and alteration endorsement part of the policy. However, the appellate court upheld the lower court’s ruling, arguing that “the loss is not covered under the policy’s fraud and alteration policy because forgery is defined in the policy as “the signing of the name of another person or organization with intent to deceive,” but Metro has failed to demonstrate the theft involved name signing as required under this definition.”