Continental Studios, Inc. v. American Automobile Insurance

Under date of August 1,1950, defendant executed its written obligation whereby it undertook; subject to certain limitations and conditions, to indemnify plaintiff for pecuniary loss suffered by plaintiff because of tbe fraud or dishonesty of its employees, or any of them. Among the conditions and limitations referred to were the following:. “Section 11. Cancellation as to any employee. This bond shall be deemed canceled as to any employee: (a) immediately upon discovery by the insured, or by any partner or officer thereof not in collusion with such employee, of any fraudulent or dishonest act…