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U. S. FIRE INS. CO. v. REPUBLIC NAT. LIFE INS.

No. B-9004.

602 S.W.2d 527 (1980)

UNITED STATES FIRE INSURANCE COMPANY, Petitioner, v. REPUBLIC NATIONAL LIFE INSURANCE COMPANY, Respondent.

Supreme Court of Texas.

Rehearing Denied July 23, 1980.

Attorney(s) appearing for the Case

Bailey, Williams, Westfall, Lee & Fowler, James A. Williams, Dallas, for petitioner.

John J. Irvin, Dallas, for respondent.

DENTON, Justice.

This cause concerns a suit on a fidelity bond issued by the petitioner United States Fire Insurance Company (hereinafter referred to as U. S. Fire). The bond was issued to insure the respondent, Republic National Life Insurance Company (hereinafter referred to as Republic), against loss due to fraudulent acts of its employees.

In August of 1973, Republic discovered that one of its employees had forged the payee signatures and altered the amounts...

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