[C199]

cumulative liability

Relates to fidelity bonds where a substantial claim could be made under a canceled bond containing a discovery period and also under another bond replacing it, since defalcations of dishonest employees often are spread over lengthy periods. To avoid this cumulative liability which could expose a surety company to a loss totaling the sum of two bonds, a clause--the superseded suretyship rider--is used, which picks up any liability under the prior bond and bars possibility of an accumulation of liability between the two bonds if issued by the same company.