Majority: Nonprofit Had ‘Reasonable Expectation’ Forgery Extension Provided Coverage

(November 11, 2022, 1:38 PM EST) -- HONOLULU — A majority of a Ninth Circuit U.S. Court of Appeals panel on Nov. 10 affirmed a lower federal court’s ruling that a nonprofit insured had a “reasonable expectation” that an insurance policy’s forgery extension covered forgery that was caused by one of its bookkeepers, rejecting the insurer’s contention that the policy exclusion for an employee's dishonest or criminal acts bars coverage under the forgery extension....