The Employer's Liability Assurance Corporation, Limited v. L. J. Marcotte Insurance Agency, a Partnership, Etc.

SANBORN, Circuit Judge.

The Employers’ Liability Assurance Corporation, Limited (Employers), a foreign insurance company, as a subrogee and assignee of Mutual Benefit Health & Accident Association (Mutual) and United Benefit Life Insurance Company (United), both of Omaha, Nebraska, brought this diversity action on February 8, 1957, against L. J. Marcotte Insurance Agency (Marcotte Agency), a partnership, and its members to recover the amount of a loss suffered by Mutual and United which Employers, by the terms of an “Insurance Companies’ Blanket Bond” which it had issued to them, was obliged…