Officials in Shelby County in Tennessee said their insurance company is not renewing the county’s policy protecting against financial crimes, a move that stems from an alleged embezzlement scheme at Chancery Court that led to $1 million in losses.
Travelers Insurance told the county in an Aug. 16 letter that current coverage will cease Nov. 1. The letter follows an earlier claim by the county asking Travelers to cover the $1 million Chancery Court loss, The Commercial Appeal reported.
Chancery Court clerk Dewun Settle resigned earlier this week. An investigation by The Commercial Appeal found that Settle allowed an employee suspected of stealing $1,063,000 to stay on the payroll for two months after a report in February revealed possible wrongdoing.
Settle has denied allegations that he repeatedly ignored auditors’ recommendations to shore up financial controls.
Topics Carriers
Was this article valuable?
Here are more articles you may enjoy.
Hedge Fund Money Is Reshaping a 180-Year-Old Insurance Model 
Data Centers Offer a Potential $10 Billion Windfall for Insurers 
Wall Street Banks Try Out Anthropic’s Mythos 
Toilet Paper Warehouse Fire Investigators Review Viral Video 
