O'SCANNLAIN, Circuit Judge:
We must decide, under California law, whether an insurer for incidents of employee dishonesty properly refused to pay the coverage limit for the first two of three separate one-year policy periods, in connection with an employee's fraudulent scheme that spanned all three periods.
I
Karen Kane, Inc. ("Kane"), a California corporation, is a Los Angeles-based apparel manufacturer. Reliance Insurance Company ("Reliance") is...
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