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eBay insurance scam exposed:

 Unfortunately, so far, a court of law has not agreed.

A federal judge in the Northern District of California has tossed out a suit charging that eBay's ShipCover insurance is worthless because the coverage excludes the exact items that the online auction site ships.

Luke Knowles, lead plaintiff in the case, claimed that eBay knew its insurance "excludes entire categories of products from coverage, but intentionally conceals that information from sellers who want to buy insurance," Courthouse News Service reported.

The excuse? 'We told you the item you bought a policy for wasn't covered'

According to court documents, Knowles allegedly made a claim to ShipCover after he refunded a buyer who informed him that a package he sent arrived at a buyer's destination open with the coin he had purchased missing.

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