Virginia Capital Bank v. Aetna Casualty & Surety Co.

The dispositive question in this appeal is whether a bank suffered a loss covered under an insurance policy called a “banker’s blanket bond” as a result of the fraudulent alteration of a note. Virginia Capital Bank (Bank) brought this action against the Aetna Casualty & Surety Company (Aetna), alleging that the Bank had sustained a loss by reason of the fraudulent alteration of a promissory note, that Aetna had insured the Bank against such losses, and that Aetna had rejected the Bank’s claim for reimbursement under the policy. Aetna denied that the Bank had suffered a covered loss.

After…