Cashier's checks are treated as guaranteed funds because the bank, rather than the purchaser, is responsible for paying them. (Shutterstock) Cashier's checks are treated as guaranteed funds because the bank, rather than the purchaser, is responsible for paying them. (Shutterstock)

Analysis brought to you by FC&S Expert Coverage Interpretation, the recognized authority on insurance coverage interpretation and analysis for the P&C industry. To find out more — or to learn how to find answers to YOUR coverage questions — click here!

Question: Our insured car dealer took a fake cashier's check for the purchase of an automobile. He let the customer take the car. Ten days later, his bank called him and told him the cashier's check was counterfeit.

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