Nearly a year after the NCUA filed a proof of loss claim to recover alleged monetary damages connected to the collapse of St. Paul Croatian FCU, the CUMIS Insurance Society has denied it.
According to the Aug. 18 complaint for declaratory judgment filed by NCUA attorneys, CUMIS acknowledged the proof of loss claim that the regulator filed Oct. 8, 2010 but has not paid on it citing alleged misrepresentation and concealment of material facts.
The NCUA filed a proof of loss claim with CUMIS for nearly $73 million. However, because CUMIS' fidelity bond has a $5 million coverage limit, the amount of money in dispute would be less than 7% of that figure, said Phil Tschudy, a CUNA Mutual spokesman.
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