Opinion ID: 26691
Heading Depth: 4
Heading Rank: 2

Heading: Exclusion “l”

Text: As noted, the district court determined that, for purposes of Rule 12(b)(6), Exclusion “l” in the CrimeGuard policy does not preclude recovery. Exclusion “l” states that the policy does not cover [l]oss or damage resulting from dissolution of money or securities which benefits any natural person, partnership or corporation (other than the Insured’s bank) acting in the capacity of a broker, factor, commission merchant, consignee, contractor or other agent or representative of the Insured except any natural person, partnership or corporation who is duly authorized by the Insured to have custody of the money or securities. [Emphasis ours.] This provision, standing alone, would not bar coverage of 7- Eleven’s loss from Alfares’s dissolution, because he is a “natural person” who was “duly authorized” by the insured, 7-Eleven, “to have custody” of the money orders. National Union contends, however, that the final clause of Exclusion “l,” which restores coverage (negates exclusion of 10 coverage) for dissolution by the person duly authorized to have custody of the money or securities, was itself deleted by a separate document, titled “Endorsement #15,” which reads in its entirety: DESIGNATED AGENTS COVERAGE It is agreed that: Employee in the Definitions section is hereby amended by including the following: 1. Employees of the following Agents, in their capacity as a Combined Distribution Center [“CDC”] are included as Employees of the Insured [7-Eleven] 1. AMR Global Logistics (CDC) 2. Bussan Logistics, Inc. (CDC)