A federal district court recently applied a final adjudication requirement to a policy provision excluding coverage for matters uninsurable by law and held that a settlement does not constitute a final adjudication.  U.S. Bank National Ass’n and U.S. Bancorp v. Indian Harbor Insurance Co., No. 12-cv-3175 (D. Minn. Dec. 16, 2014).  U.S. Bank National Association and U.S. Bancorp (collectively “U.S. Bank”) settled a number of class actions alleging the overcharging of overdraft fees to its customers and sought coverage for the settlement and associated defense costs from its insurers.  The insurers denied coverage, arguing that the settlement was restitutionary in nature and therefore did not constitute a “Loss” under the relevant policies, the definition of which excluded:  (i) matters uninsurable under the law pursuant to which the policy is construed (the “Uninsurable Provision”); (ii) monies paid as a result of any extension of credit by U.S. Bank (the “Extension of Credit Provision”); and (iii) any profit or remuneration gained by U.S. Bank to which it is not legally entitled as determined by a final adjudication (the “Illegal Profit Provision”).  Ruling in favor of the insured, the court held that to interpret the first and third policy provisions consistently, it must read the final adjudication requirement into both.  The court further held that a settlement does not constitute a final adjudication where it excludes an admission of liability and fail to establish that the underlying allegations are either true or false.  Because no final adjudication had determined U.S. Bank’s settlement to be restitutionary in nature, neither the Uninsurable Provision nor the Illegal Profit Provision applied to exclude coverage.  The court likewise refused to apply the remaining Extension of Credit Provision to exclude coverage because the settlement involved only the assessment of overdraft fees and not the provision of overdraft protection.  Only the provision of overdraft protection has been held to constitute an extension of credit for purposes of such an exclusion.