Larson v. PEERLESS INSURANCE COMPANY

RENFRO, Justice.

Defendant Peerless Insurance Company issued to plaintiff Friendly Finance Company a fidelity bond effective April 27, 1960, covering plaintiff’s employee Jack L. M. Draper, Jr.

Paragraph VI thereof provided: “This bond shall terminate as to future acts of any Employee immediately upon discovery by the insured, or, if a corporation, by any director thereof or by any officer thereof not in collusion with such Employee, of any fraudulent or dishonest act on the part of such Employee, whether in the service of the Employer or otherwise.”

The parties stipulated:

“2. The bond in…