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EMP. ADMIN. SERV. v. HARTFORD ACC. & INDEM.

No. 1 CA-CIV 6797.

147 Ariz. 202 (1985)

709 P.2d 559

EMPLOYER'S ADMINISTRATIVE SERVICES, INC., an Arizona corporation; and Chester Flaxmayer, as Receiver of Employer's Administrative Services, Inc., Plaintiffs-Appellants, v. The HARTFORD ACCIDENT & INDEMNITY COMPANY, a Connecticut corporation, Defendant-Appellee.

Court of Appeals of Arizona, Division 1, Department A.

Review Denied November 13, 1985.

Attorney(s) appearing for the Case

Nicholas C. Guttilla, P.C. by Nicholas C. Guttilla and Brooks T. Hozier, Phoenix, for plaintiffs-appellants.

Jennings, Kepner & Haug by William F. Haug and Carolyn M. Kaluzniacki, Phoenix, for defendant-appellee.

OPINION

HAIRE, Presiding Judge.

The central issue on appeal is whether a fidelity bond issued by Hartford to Employer's Administrative Services (EAS) covered losses incurred by EAS as a result of the fraudulent acts of Gary Simmons and Bonnie Lindstrom, EAS's sole officers, directors, and shareholders.

EAS was formed as an Arizona corporation in 1976. EAS administered group health plans for businesses which employed EAS's services to receive and disburse...

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