Financial Institution Bond

STANDARD FORM NO. 25

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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