New York Panel Affirms No Coverage For $ 1.7M Loss Arising From Forgery

ALBANY, NY - An employee's alleged act of forging another employee's name without consent in order to approve loan transactions that he has no authority to approve constitutes a dishonest act under a financial institution bond, a New York appeals panel found Jan. 26, affirming a lower court's ruling in favor of an insurer (Capital Bank & Trust Company v. Gulf Insurance Company, No. 512601, N.Y. Sup., App. Div., 3rd Dept.; 2012 N.Y. App. Div. LEXIS 449). Full story on lexis.com