MADISON, Wis. — Recent litigation against some corporate CUs by natural-person credit unions raises the specter of CUNA Mutual group financing both the plaintiffs and the defendants under its various coverages. When asked about whether that is or might become the case, a spokesperson for the insurer said there is no specific answer, as each case involves different policies at different institutions.
"Some of our insurance products can, in certain situations, insure expenses for covered claims, including for litigation," CUNA Mutual said in a statement to Credit Union Journal. "We aren't able to comment on specific claims, including any that might involve corporate credit unions. Since all cases are very fact-specific, it isn't possible to give general guidance on when litigation costs are covered as part of an insured loss."
