First National Bank v. Guaranty Life Insurance

1. Where an insurance company, as drawer, entrusts to its agent a check to be delivered, to the payee, the agent, without more, has no real or apparent authority to deliver the cheek to any other person, and where he wrongfully delivers the check to another, whom he procures to impersonate the payee and to forge the payee’s indorsement thereon, and whom he then introduces to a bank, which pays the check upon such forged indorsement with the additional indorsement of the agent, the bank, as between itself and the drawer, must bear the loss. Under such facts, the bank was not relieved of its…