Fee Exclusion Bars Professional Liability Coverage, 2nd Circuit Affirms

( February 4, 2026, 10:51 AM EST) -- NEW YORK — The Second Circuit U.S. Court of Appeals on Feb. 3 affirmed a lower federal court’s grant of summary judgment in favor of primary and excess professional liability insurers, holding that a fee exclusion bars coverage for a financial services company insured’s liability in two underlying class actions alleging that certain mortgage loan fees were unlawful and the insured was derivatively liable under the Home Ownership and Equity Protection Act....