Northeast Lincoln-Mercury, Inc. v. Century Indemnity Co.

Opinion by

Gunther, J.,

On May 4, 1950, the Century Indemnity Company of Hartford, appellant, insured the Northeast Lincoln-Mercury, Inc., appellee, for a period of three years against loss from employe dishonesty. Two and one-half years later an employe and principal in this case was engaged by the appellee company and worked until April 24, 1953 when he was dismissed for stealing property belonging to the appellee.

Proof of claim was filed but appellant refused to pay on the ground that the policy was cancelled by reason of the appellee’s knowledge that the principal committed dishonest acts…