diff --git a/lib/postgresql_cursor/cursor.rb b/lib/postgresql_cursor/cursor.rb
index 57382c0..73d201c 100644
--- a/lib/postgresql_cursor/cursor.rb
+++ b/lib/postgresql_cursor/cursor.rb
@@ -194,7 +194,7 @@ def each_tuple(&block) #:nodoc:
         rescue Exception => e
           raise e
         ensure
-          close if @block
+          close if @block && connection.active?
         end
       end
       @count
@@ -216,7 +216,7 @@ def each_batch(&block) #:nodoc:
             break if has_do_while && rc != @options[:while]
           end
         ensure
-          close if @block
+          close if @block && connection.active?
         end
       end
       @count
diff --git a/test/test_postgresql_cursor.rb b/test/test_postgresql_cursor.rb
index 010bff2..4d8e43f 100644
--- a/test/test_postgresql_cursor.rb
+++ b/test/test_postgresql_cursor.rb
@@ -130,6 +130,26 @@ def test_batch_exception
     assert_equal e.message, 'Oops'
   end
 
+  def test_exception_in_failed_transaction
+    begin
+      Product.each_row_by_sql("select * from products") do |r|
+        Product.connection.execute('select kaboom')
+      end
+    rescue Exception => e
+      assert_match(/kaboom/, e.message)
+    end
+  end
+
+  def test_batch_exception_in_failed_transaction
+    begin
+      Product.each_row_batch_by_sql("select * from products") do |r|
+        Product.connection.execute('select kaboom')
+      end
+    rescue Exception => e
+      assert_match(/kaboom/, e.message)
+    end
+  end
+
   def test_cursor
     cursor = Product.all.each_row
     assert cursor.respond_to?(:each)