Forgery/Alteration Insuring Agreement

The Forgery or Alteration Insuring Agreement (also known as Insuring Agreement D) provides coverage for losses resulting from forgery or alteration of negotiable instruments (except an Evidence of Debt) and instructions to pay, including counterfeit items.

Coverage Summaries of Bond Insuring Agreements

Claims Examples
  • A bookkeeper of a corporate customer signs the business owner’s name on a company check and deposits the funds into her personal account at another bank. The forgery is detected when the business owner reviews his monthly statements.

  • A corporate customer reports a discrepancy on his monthly statement. Upon investigation, it is determined that someone has obtained one of the customer’s cancelled checks and created counterfeit checks that were negotiated at several financial institutions in the area. The bank reimburses the customer for the missing funds.

  • Actual physical possession of a written original item is required, although, substitute checks and, under certain circumstances, instruments transmitted electronically are covered.

Notwithstanding any language to the contrary, nothing contained herein constitutes nor is intended to constitute an offer, inducement, promise, or contract of any kind. All coverage descriptions and claims examples are provided for informational and educational purposes only and are not a representation as to coverage for any particular claim and are not represented to be error free. Coverage for any claim is determined upon the specific facts of the claim, the terms and conditions of the policy and applicable law. For details on the coverage provided by your specific contract of insurance, please refer to your policy. Coverage is subject to underwriting guidelines and may not be available in all states. Limits may be capped for underwriting reasons. Any links to any sites which are not originated by ABA Insurance Services Inc. (ABAIS) are provided only as a courtesy and are not intended to nor do they constitute an endorsement by ABAIS of the linked materials.