Fidelity Bond


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Fidelity Bond

An insurance device in the form of a personal guaranty that protects against loss resulting from disreputable or disloyal employees or other individuals who possess positions of confidence.

A bank might, for example, insure itself against losses deliberately or negligently caused by their officers and staff through the execution of a fidelity bond. If such losses occur, the amount of the bond is forfeited to reimburse the losses.

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In order to broaden the bond's coverage to reimburse trading losses arising from employee dishonesty, forgery of certain instruments, or certain forged or counterfeited securities, for a higher premium, insureds can obtain a fidelity bond that deletes the trading loss exclusion from the policy in connection with these types of perils by:
The fidelity bond issued to Sperry from CUMIS was identical to the CUMIS Form 500 bond that was issued to the 26 credit unions that were also defrauded by CUN/ USM, according to Sperry's complaint.
Under collateral source rule, wrongdoers are not entitled to credit for amounts received by insured under fidelity bond.
Non-standard fidelity risks are OK, as are special fidelity bond manuscripted for particular clients.
However, because CUMIS' fidelity bond has a $5 million coverage limit, the amount of money in dispute would be less than 7% of that figure, said Phil Tschudy, a CUNA Mutual spokesman.
Centennial Insurance Co.(19) the assignee of two insured companies sought recovery under a fidelity bond for losses sustained as a result of the fraudulent acts of John Panagako.
Arkansas State University participates in the Arkansas Multi-Agency Insurance Trust fund for all property and automobile coverage as well as the States Fidelity Bond Program.
Co., et al., and in it the plaintiff alleged wrongful denial of $20 million owed under fidelity bond policies issued by Liberty, Zurich American Insurance Co., Axis Insurance Co.
in a case involving a wrongful denial of a fidelity bond claim.
In Matter of World Hospitality Ltd.(16) the insured's bankruptcy trustee sought recovery under a fidelity bond for losses caused by the insured's president, Kenneth Wohl, who appropriated some of the insured's assets for his personal use.
Tenders are invited for Purchase of property, commercial liability, automobile liability, umbrella liability, professional liability, fidelity bond, and workers compensation insurance services.
"Most, if not all, fidelity bond policies have a termination of coverage condition that terminates coverage under the fidelity bond for individuals who have committed known dishonest acts.