I. INSTITUTIONS ELIGIBLE FOR FORM 25
Insurance and Reinsurance Companies of all kinds including Title Insurance
Companies doing principally a title insurance business (but not those Title
Insurance Companies referred to in Financial Institution Bonds 15 and 24),
Self-Insurance and Risk Retention Groups.
II. FORM 25 COVERAGE SYNOPSIS
a. The basic bond coverage provided under Form 25 consists of Insuring
Agreements A, B and C:
Insuring Agreement A – Fidelity
Covers loss resulting directly from dishonest or fraudulent acts committed
by an employee acting alone or in collusion with others, with the manifest
intent to cause the insured to sustain such loss and to obtain financial
benefit for the employee or another person or entity.
Insuring Agreement B – On Premises
Covers loss of property resulting directly from
1) robbery, burglary, misplacement, mysterious unexplainable disappearance
and damage thereto or destruction thereof, or
2) common-law or statutory larceny, committed by a person present in an
office of the insured covered under the bond,
while the property is lodged or deposited within any of the insured’s
offices covered under the bond, or within offices of any financial
institutions, attorneys of the insured, clearing houses, or other locations
specified in the bond.
Also covers loss or damage to the insured’s offices, furnishings, fixtures,
supplies or equipment through specified perils, except loss or damage through
fire.
Insuring Agreement C – In Transit
Covers loss of property resulting directly from robbery, common-law or
statutory larceny, misplacement, mysterious unexplainable disappearance, being
lost or made away with, and damage thereto or destruction thereof, while the
property is in transit anywhere in the custody of a natural person acting as
messenger, or in the custody of a Transportation Company.
b. The following coverages contained in Form 25 are
optional:
Insuring Agreement D – Forgery or Alteration
Covers loss resulting directly from forgery or alteration of, on or in any
request made for change of beneficiary in any policy issued by the insured,
policy loan agreement made with the insured, assignment to the insured of any
of its policies, or in any instrument specified in the Insuring
Agreement.
Insuring Agreement E – Securities
Covers loss resulting directly from the insured having, in good faith, for
its own account or for the account of others, acquired, sold or delivered, or
given value, extended credit or assumed liability, on the faith of any
original instrument specified in the Insuring Agreement which proves to bear a
forged signature or which has been altered, lost or stolen.
Coverage for Data Processing Organizations
Covers as employees, data processing organizations while acting on behalf
of the insured in the data processing of checks and other accounting records
of the insured.
c. The following optional coverages may be added to Form 25 by
rider:
Agents Fidelity Insuring Agreement - For Life Insurance Companies
only
The rider covers loss resulting directly from the dishonest or fraudulent
acts of any agent named or described in the rider.
Computer Systems Fraud Insuring Agreement
The rider covers loss resulting directly from a fraudulent entry of
electronic data or computer program into, or change of electronic data or
computer program within a computer system covered under the terms of the
rider.
Draft - Signers
Coverage
The rider covers as employees the natural persons authorized to sign drafts
on behalf of the insured, for the insured’s policyholders empowered by
contract with the insured to settle their own claims.
Extortion - Threats to Persons
Insuring Agreement
The rider covers loss of property surrendered away from an office of the
insured as a result of a threat communicated to the insured to do bodily harm
to a director, trustee, employee or partner of the insured or a relative of
theirs who was, or allegedly was, kidnapped anywhere.
Extortion - Threats to Property
Insuring Agreement
The rider covers loss of property surrendered away from an office of the
insured as a result of a threat communicated to the insured to do damage to
the premises or property of the insured located anywhere.
Trading Loss Coverage
The rider covers loss resulting directly or indirectly from trading,
whether in the name of the insured or otherwise, in a genuine or fictitious
account.
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