Yesterday, the First Circuit affirmed a judgment against an insurer that tried to avoid paying a company’s loss due to embezzlement. The court held that the evidence supported the jury’s conclusion that a false answer about check-signing authority didn’t materially increase the carrier’s risk. Federal Ins. Co. v. HPSC, Inc., No. 06-1050 (1st Cir. Mar. 15, 2007) (applying Massachusetts law).