In World Exchange Bank v. Commercial Cas. Ins. Co., 255 NY 1 (1930) a bank teller accepted fraudulent checks and drafts from a man named Martin Katz, paying Katz case in exchange for the instruments although there were insufficient funds in the account to cover the checks and drafts. Although approval of the supervisor was required in such circumstances, the teller obtained the bank president's approval for the first check and paid all subsequent checks and drafts without approval. The plaintiff Bank sued its insurance company when the company denied indemnification. The Bank argued that, among other things, the loss was covered under a policy provision indemnifying it for "any loss through any dishonest or criminal act of any of the insured's officers, clerks or other employees . . . whether committed directly or by collusion with others." Id. at 4, 173 N.E. at 903.