Plaintiffs are Fifth Avenue diamond dealers who held a jewelers block insurance policy with defendant. The policy insured against loss of merchandise while in the custody of plaintiffs' selling agents, up to a coverage limit of $300,000. The policy contained an exclusion for "[u]nexplained loss, mysterious disappearance or loss or shortage disclosed on taking inventory."
Non-party Mason Fletcher was one of plaintiffs' sales representatives. Sometime during his trip...
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