Illinois Receiver Suit to Continue Only Against Cyber Carrier

A hack of the office handling estates of insolvent or troubled Illinois insurance companies that resulted in the transfer of nearly $7 million isn’t covered by a bond issued to the office, but it may be covered under a cyber insurance policy.

The US District Court for the Northern District of Illinois in a Monday order granted a Hartford Insurance Group Inc. unit’s motion to dismiss the Office of the Special Deputy Receiver’s claims against it, but the judge denied a motion to dismiss by HSB Specialty Insurance Co., which issued the cyber policy.

The OSD experienced a breach of ...