The policy included an "invalid payments exclusion clause," which limits liability for property losses "consequent upon" handing the insured property over "to any third party" against payment by fraudulent check. (Credit: Icatnews/Shutterstock)
A pro-insurer ruling was handed down by the Texas Supreme Court in a case regarding coverage for stolen gold coins worth more than $1 million and a coin dealer who was swindled with fraudulent checks used by an identity thief. The case is Dillon Gage Inc. v. Certain Underwriters at Lloyds Subscribing to Policy No. EE1701590,
The Texas high court was handed two certified questions by a federal appeals court. In answering those questions, the court said that the policy wording should be interpreted to mean that an exclusion and a sublimit applied and that the alleged negligence of the third party that shipped the goods did not allow for an additional claim.
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