Gulf Underwriters Insurance v. KSI Services, Inc.

MEMORANDUM OPINION

ELLIS, District Judge.

In this diversity declaratory judgment action, an insurer seeks a declaration that an errors and omissions policy provides no coverage to an entity claiming to be a third-party beneficiary of the policy by virtue of the operation of an exclusion barring coverage for an insured’s dishonest or criminal acts.

For the reasons that follow, the declaration must issue.

I

The material facts are undisputed and may be succinctly stated. 1 Plaintiff, Gulf Underwriters Insurance Company (“Gulf’),, is a Connecticut corporation engaged in the insurance business with its…