Renasant Bank v. St. Paul Mercury Insurance Co.

A Mississippi statute, Miss. Code Ann. § 81-5-15 , requires bank employees to post fidelity bonds that protect against "acts of dishonesty." Renasant Bank did not require its employees to post such bonds. Instead, like most banks today, it purchased a Financial Institution Bond, which covers losses caused by employees only when certain criteria are met ("the Bond"). At issue in this case, inter alia , is whether the Bond's criteria improperly limit coverage in light of § 81-5-15's allegedly broad mandate.

Assuming arguendo that the Bond is governed by § 81-5-15, we conclude that the Bond's…