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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
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Segal Select Insurance Services Inc, a fiduciary insurance and fidelity bond broker in the Taft-Hartley market, has announced that it has acquired a brokerage.
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ERISA Fidelity Bonds: To be combined or not to be combined?
By statute, the Federal Deposit Insurance Company can require insured financial institutions to maintain fidelity bonds to insure against such losses, and the FDIC has chosen to mandate that requirement.
Personnel: Agreements should identify who will hire personnel providing services under the agreement and who will bear associated personnel costs, including salaries, fidelity bonds, payroll taxes, worker's compensation costs, etc.
Some organizations may wish to go one step further and obtain fidelity bonds to cover those volunteers that will handle cash.
Available for more than 20 years, the program provides general and professional liability coverage, workers' compensation, fidelity bonds, and employment practices liability.
Back in the days when fidelity bonds covered losses due to employee dishonesty, insurers issued continuous policies.
The Surety Association of America, which underwrites "blanket fidelity bonds" -- insurance policies that provide coverage against losses due to employee dishonesty -- found that insurers like AIG, Pruduential and Travelers paid out $385 million in losses in 1998 on $674 million in premiums underwritten -- a high loss ratio of 57 percent.
The letter asked for numerous forms and documents, including plan documents, summary plan descriptions, tax returns, annual reports, audited financial statements, board and committee minutes, fidelity bonds, service provider agreements and more.
Professional liability insurance, directors' and officers' (D&O) liability insurance and fidelity bonds fail to provide relief.

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