Prosser Power Co. v. United States Fidelity & Guaranty Co.

Citations

• 73 Wash. 304
• 132 P. 48
• 1913 Wash. LEXIS 1598

Syllabus

<p>Insurance — Fidelity Bond — Signature oe Principal — Waiver. An indemnity company insuring the fidelity of an employee waives the requirement that the principal sign the bond where its agent delivered the bond without such signature.</p> <p>Same — Delivery. A fidelity bond is sufficiently delivered where the agent of the surety company handed it to the employee whose fidelity was guaranteed with intent to pass it to the custody of the employer.</p> <p>Same — Application—Warranty—Breach—Evidence. No breach of warranty that an employee’s accounts had been examined September 1, 1909, and found correct, is shown by testimony of the insured’s president that he would not say that the books were examined on the first of each month.</p> <p>Same — Conditions—Examination oe Accounts. The requirement of a fidelity bond of a monthly examination of the books of the employee, and a “daily and monthly” accounting for funds handled, is sufficiently complied with where it is shown that the' accounts were examined once a month and a daily examination made of the receipts, ledger and banking account, and the employee was required to submit a' complete financial statement once each month, and no discrepancies were found.</p> <p>Same — Conditions—Settlement. A condition in a fidelity bond that any settlement with the principal for any loss shall render the bond null and void is not broken by the acceptance of money applied in settlement of an embezzlement prior to the date of the bond.</p> <p>Same. The acceptance of money applied in settlement of an embezzlement prior to the date of an indemnity bond is not a violation of the provision in the bond that if the obligee shall hold concurrent security, the surety shall be liable for only a proportion of the loss.</p>