A federal appeals court has ruled that an insurance company is not liable if a bank improperly cashes a check made out to multiple insured parties, with the ruling specifically impacting Florida’s insurance landscape. The U.S. 11th Circuit Court of Appeals overturned a lower court’s decision, stating that Markel American Insurance Co. fulfilled its obligations by issuing a joint check for over $573,000 to two truck-leasing firms. The court noted that any failure to distribute the funds should be addressed through litigation against the bank, not the insurer. This decision aligns with existing state law regarding joint checks and is expected to alleviate similar claims against insurers in the future.
