Hansen & Rowland, Inc. v. Fidelity & Deposit Co. of Maryland

The plaintiff Hansen & Rowland, Inc., is a Washington corporation, with its principal office in Tacoma, Wash., and is engaged in a general insurance agency business. In October, 1919, the company, in addition to its principal office, operated a branch in Seattle, Wash., and also was interested in several subsidiary corporations in Tacoma.

On October 24, 1919', the Fidelity & Deposit Company of Maryland, hereinafter referred to as the defendant, executed and delivered to Hansen & Rowland, hereinafter referred to as the parent company, a “position form of fidelity schedule bond” or “position bond.” This bond insured the parent company “and/or its Subsidiary Companies, of Tacoma, Washington, (hereinafter called employer)” against loss through the dishonesty of their employees. Attached to the bond was a “schedule of positions covered hereunder,” with the respective amounts of coverage, but listing no names of individuals occupying the positions.

The bond covers losses caused by the acts of “any person now or hereafter filling any office or position named in the schedule hereto attached or added thereto by acceptance notice as hereinafter provided,” with the condition that such acts…