FINANCIAL INSTITUTION BOND
STANDARD FORM NO. 25 (Revised to May, 2011)
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 an improper financial benefit.
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) theft, false pretenses, common-law or statutory larceny, committed by a person physically present in an office or on the premises of the insured at the time the property is surrendered, while the property is lodged or deposited within offices or premises located anywhere, except offices-premises specifically excludes.
Also covers loss or damage to the insured's 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, theft, misplacement, mysterious unexplainable disappearance, and damage thereto or destruction thereof, while the property is in transit anywhere in the custody of a messenger, or in the custody of a Transportation Company.
Insuring Agreement F - Counterfeit Money
Covers loss resulting directly from the receipt by the insured, in good faith, of any counterfeit money of the United States, Canada or any other country in which the insured maintains a branch office.
b. The following coverages contained in Form 24 are optional:
Insuring Agreement D - Forgery or Alteration
Forgery or Alteration Coverage is optional. Coverage is provided for loss resulting directly from forgery or alteration of, on or in any instrument specified in the Insuring Agreement.
Insuring Agreement E - Securities
Securities Coverage is optional. Coverage is provided for 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.
Insuring Agreement G - Fraudulent Mortgages
Coverage is optional. Coverage is provided for loss resulting directly from having accepted or acted upon the faith of any real property mortgage which proves defective by reason of a fraudulent signature.
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.