International Union Bank v. National Surety Co.

The defendant issued to the plaintiff bank a policy of insurance against “ any loss through the payment, whether received over the counter or through the clearing house, or by mail, of forged or raised checks or (genuine) checks bearing forged indorsements or the establishment of any credit to any customer on the faith of such checks.” Thereafter one George D. Wagner opened an account with the plaintiff bank. On the 11th day of February he had a credit balance of three hundred and fifty dollars. On that day he presented to the plaintiff bank two checks for four hundred dollars each. They were…