When claims filed with an insurance company were approved for payment, they were given to the claims
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When claims filed with an insurance company were approved for payment, they were given to the claims clerk, who would prepare checks to pay those claims and then give the checks to the treasurer to sign. The claims clerk of the insurance company made a number of checks payable to persons who did not have any claims and gave them to the treasurer with the checks for valid claims, and the treasurer signed all of the checks. The claims clerk then removed the false checks, indorsed them with the names of their respective payees, and cashed them at the bank where the insurance company had its account. The bank debited the account of the insurance company with the amount of these checks. The insurance company claimed that the bank could not do this because the indorsements on the checks were forgeries. Was the insurance company correct? [General Accident Fire & Life Assur. Corp. v Citizens Fidelity Bank & Trust Co., 519 SW2d 817 (Ky)]
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No This case is one of the three impostor situations It is the situation of an e...View the full answer
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