Clifford A. Zucker v. U.S. Specialty Insurance Company

ED CARNES, Chief Judge:

For want of good corporate officers, BankUnited Financial Corporation engaged in risky lending practices before November 2008. For want of good lending practices, BankUnited became insolvent. For want of solvency, BankUnited’s transfers of money to its subsidiary were fraudulent.

Wanting their money back, BankUnit-ed’s creditors sued its officers for authorizing those transfers. Wanting protection from the resulting liability, the officers asked their insurer—U.S. Specialty—to indemnify them. Not wanting to do that, U.S. Specialty refused based in part on a policy…