CNA Casualty of California v. E.C. Fackler, Inc.

E.C. Fackler was in the business of administering trusts for employers who wanted to self-insure against workers’ compensation claims. Fackler managed three self-insurance trusts into insolvency. The issue in this case is whether Fackler’s professional liability policy requires its insurance company to cover claims for lost funds.

Plaintiff CNA Casualty of California (CNA) sought a declaration that it was not required to pay claims asserted against its insured, E.C. Fackler, Incorporated, and a successor corporation, E.C. Fackler Insurance Services, Incorporated (Fackler), by the acting…