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AMERICA TR. & SAV. v. FIDELITY & GUAR.

No. 87-28.

418 N.W.2d 853 (1988)

AMERICAN TRUST & SAVINGS BANK, Dubuque, Iowa, Appellee, v. UNITED STATES FIDELITY & GUARANTY COMPANY, Appellant. UNITED STATES FIDELITY & GUARANTY COMPANY, Third-Party Plaintiff, v. O'CONNOR, BROOKS & COMPANY a Partnership, Third-Party Defendant.

Supreme Court of Iowa.

As Corrected February 22, 1988.

Rehearing Denied March 11, 1988.

Attorney(s) appearing for the Case

William C. Fuerste, Allan J. Carew and Norman J. Wangberg of Fuerste, Carew, Coyle, Juergens and Sudmeier, P.C., Dubuque, for appellant.

Francis J. O'Connor, Brendan T. Quann and Stephen C. Krumpe of O'Connor & Thomas, P.C., Dubuque, for appellee.

Considered by SCHULTZ, P.J., and LAVORATO, NEUMAN, SNELL and ANDREASEN, JJ.

SCHULTZ, Presiding Justice.

The American Trust and Savings Bank, Dubuque, Iowa (bank) purchased a banker's blanket bond from United States Fidelity and Guaranty Company (insurer). The bond protected the bank from various specified losses including those directly resulting from dishonest or fraudulent acts of the bank's employees. The fighting issue in this case is the extent to which the terms of the bond require the insurer to reimburse the bank by reason of an employee...

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