Insurer Not Liable if Bank Improperly Cashes Insurance Check, Appeals Court Finds

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Insurance carriers are not responsible if a bank improperly cashes a check made out to two insureds and gives the proceeds to only one of them, a federal appeals court decided this week.

The U.S. 11th Circuit Court of Appeals on Wednesday reversed a lower federal court’s ruling and held that Markel American Insurance Co. had upheld its obligation when it issued joint checks for $573,404 made payable to two insured truck-leasing firms in Florida.

“Markel American agreed to provide coverage and payment for negotiated claims. It did not, however, agree to assume responsibility for

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