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Judge Griesa http://nycourts.law.com/CourtDocumentViewer.asp?view=Document&docID=44465 PLAINTIFF SECURITIES brokerage firm held a professional indemnity insurance policy with defendant insurer. The policy covered plaintiff against wrongful acts by broker-dealers and other insured persons employed by or representing plaintiff. When two of plaintiff’s clients alleged that a registered representative of plaintiff fraudulently induced them to invest money, plaintiff requested defense and indemnification. The clients alleged that plaintiff negligently failed to supervise and monitor activities by the representative. Defendant first asserted that the claims arose from a wrongful act prior to coverage. Defendant now asserted the intentional act exclusion barred coverage. The court dismissed the action. Defendant did not waive its right to assert the intentional act exclusion by failing to invoke it in initial denial coverage letters. The court concluded the registered representative was an insured, rendering the exclusionary clause applicable.

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